£125,000 penalty for misreporting
Ofgem has imposed a £125,000 penalty on Opus Energy after Ofgem identified that the company had misreported the amount of electricity supplied under the Government’s Renewables Obligation. In addition, Opus Energy has retired a total of 7,016 Renewables Obligation Certificates (ROCs), with an estimated value of £360,000.
Opus Energy has also agreed to undertake an annual independent audit of its procedures for reporting under the Renewables Obligation.
The misreporting was caused by shortcomings in Opus Energy’s methodology for calculating its electricity supply data and in the company’s internal procedures. Ofgem’s investigation focused on these procedures and on information misreported for the year 2009-10. Opus Energy has demonstrated to Ofgem’s satisfaction that it has rectified its procedures in line with Ofgem’s recommended method to calculate electricity supply data under the Renewables Obligation.
The Renewables Obligation requires energy suppliers to provide evidence of the amount of electricity supplied from renewable sources relative to total electricity supplied. Financial incentives designed to promote the use of renewable energy depend on the accuracy of this information. Ofgem administers this scheme on behalf of the Government.
Ofgem’s Senior Partner in charge of enforcement, Sarah Harrison (pictured), said: “Ofgem takes the issue of misreporting seriously and this penalty reinforces to industry their responsibilities to submit accurate information. Opus Energy’s willingness to engage in the settlement process was reflected in the level of penalty. Without this, the penalty would have been much higher.”
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