22nd October 2020 | Posted by: Daniel Birkett | Industry News

Businesses may be subject to a one-off Renewables Obligation charge in December 2020 due to the closure of several suppliers.

Several UK suppliers ceased trading between April 2018 and March 2019, as a result, the companies in question failed to meet their Renewables Obligation (RO) contribution for this compliance period.

Active suppliers were then required to pay the outstanding RO costs to cover the shortfall, which was enforced by regulators, Ofgem; the total cost of this was £97.5m.

These additional costs will now be passed onto Flex and I&C Pass Through customers, in some cases this will be in the form of a one-off charge in December 2020.

Businesses should also be aware that some suppliers have changed rates on non-fixed contracts in an attempt to recover their increased RO contribution. It is advised to check with your broker to find out how these costs may be recovered by your energy supplier.

What does this mean?

In December 2020, affected customers could incur a one-off charge on their energy bill. Even if customers have since changed contract, they may be charged by whoever supplied their energy between April 2018 and March 2019.

Customers who receive an E-Bill can find the charge on a new line on their invoice.

In other cases, flex customers may see a slight adjustment in their energy rates.

If you would like to learn more about the Renewables Obligation charges, or non-energy costs in general then feel free to give one of our consultants a call on 02157 239500, or by emailing us at [email protected],co.uk.