BEIS publishes responses to consultation on supplier payment default under RO scheme

Article summary

The Department for Business, Energy & Industrial Strategy (BEIS) and Ofgem have published the responses to the consultation addressing electricity supplier payment default under the Renewables Obligation (RO) scheme, which ran from August to November 2021. They received 40 responses from a range of stakeholders, with the majority of respondents supporting action to tackle supplier payment default through legislative requirements to ensure more frequent settlement. However, some concerns were raised regarding the negative effect this may have on suppliers. Respondents also demonstrated support for introducing a licence-based requirement, while others supported a combined licence-based and legislative approach, while others sought to maintain the existing policy. As a result of the varied views and in light of the market volatility leading to many suppliers exiting the market, BEIS and Ofgem do not think legislating for more frequent settlement is the right approach currently. Therefore, BEIS and Ofgem will come back to industry later...