On 26 January 2022, the Authority published its decision not to confirm the provisional order issued to Together Energy (Retail) Limited (“Together”), following the consultation period.
Together ceased trading on 18 January 2022 and its licence to supply electricity was subsequently revoked. As a result the Authority has taken the decision not to confirm the provisional order.
For further details please see the Decision document dated 24 January 2022 below.
Together’s customers have been transferred to British Gas under the Supplier of Last Resort (SoLR) process. If you would like any further information regarding the SoLR process and how this is being managed please see: Ofgem appoints British Gas to take on customers of Together Energy Retail Ltd | Ofgem
Ofgem issued the provisional order on 29 October 2021 after Together informed the Authority it would not make its Renewables Obligation (“RO”) Payment of £12,508,099.14, including interest, by the deadline of 31 October 2021. This provisional order required that Together pay the outstanding amount.
The Authority issued a Notice of Proposal to confirm the provisional order, with modifications, on 16 December 2021. The Notice of Proposal invited representation or objections in relation to the proposed confirmation by 13 January 2022. The Authority received one representation. In making its decision, the Authority considered the representation it received.
Notice of Proposal to Confirm Provisional Order
On 16 December 2021, the Authority published its notice of proposal to confirm the provisional order dated 29 October 2021, with modifications, imposed on Together Energy (Retail) Limited (“Together”) on the grounds that Together is contravening or is likely to contravene the requirement to discharge its Renewables Obligations (“RO”) under the arrangements set out in the Renewables Obligation Order 2015 (“the ROO”) and the Renewables Obligation (Scotland) Order 2009 (“the ROS”). The Authority proposed to confirm the order in the notice of proposal.
The Authority gave notice that in accordance with section 26(1) of the Electricity Act:
1. The requirement to discharge the RO in accordance with the ROO and the ROS are the requirements for the purpose of the provisional order;
2. The acts or omissions which, in the Authority’s opinion, constitute or would constitute contraventions of those conditions and requirements, and other factors which in the Authority’s opinion justify the confirmation of the provisional order are those set out in the Notice of proposal to confirm the provisional order.
3. Any representations or objections with respect to the proposed confirmation were to be made to the Authority by 5pm, 13 January 2022, by email to megan.pickard@ofgem.gov.uk and melissa.granger@ofgem.gov.uk.
The Authority would consider these representations and then make a final decision on whether to confirm the provisional order prior to 27 January 2022 (the date on which the provisional order would lapse if not confirmed).
Issue of Provisional Order
On 29 October 2021, the Authority issued a provisional order to Together under section 25(2) of the Electricity Act 1989 (EA89).
The particular behaviour of concern was that Together failed to meet its Renewables Obligations (RO), because it did not produce Renewables Obligation Certificates to the Authority by 1 September 2021, or make payments as an alternative by 31 August 2021, sufficient to discharge its RO.
In September 2021, Together provided assurance that it could and would be in a position to make the necessary payment, including applicable interest, by the late payment deadline of 31 October 2021.
However, on 28 October 2021, Together informed Ofgem that it would not be able to pay its RO in full by 31 October 2021.
The modified provisional order required Together to pay the outstanding amount forthwith.
Provisional orders are issued in certain circumstances in accordance with the EA89 and where certain conditions are satisfied. Further information regarding provisional orders is contained within our Enforcement Guidelines.
On 29 October 2021, the Authority published a Notice of Reasons explaining in greater detail the rationale for issuing the provisional order.