Nottingham energy supplier hits back over £9.4m tax bill

Not-for-profit energy supplier Robin Hood Energy has disputed claims that it failed to pay £9.4 million in green taxes to industry regulator Ofgem.

According to a report by Sky News, the Nottingham-based company is one of four energy firms to have been given an extra month to stump up its renewable energy payments.

However, the Nottingham City Council-backed energy supplier has released a statement insisting that Ofgem was open to a staggered payment plan when the two parties met last month – but has now demanded payment in full by 31 October.

In the statement published on Robin Hood Energy’s web site, chief executive officer Gail Scholes said: “In August of this year, we wrote to Ofgem and met them in September to discuss making this year’s payment in instalments, as they had previously agreed with other suppliers last year.

“This was a prudent business decision to help us more effectively manage the high demand of the winter period, a potential general election as well as mitigating potential market risks around a no-deal Brexit.

“Despite welcoming our proactive approach and advising that as long as our ROCs (Renewable Obligation Certificates) payment was made by March 2020, which we had always planned to do, then this matter would be resolved. However, Ofgem has now written to us today (1 October 2019) demanding payment in full by 31 October.

“It is frustrating that, in our view, following our proactive and open conversation with Ofgem in August, we now find ourselves the subject of significant media interest, with questions being asked about our fundamental ability to operate as a business.

“This is plainly incorrect.

“We operate in a tough market but we remain on track to report a profit for this financial year and next. As a business, we are paying all other suppliers as per the terms of those contracts.

“A number of companies paid last year via instalments and this was our proposal to Ofgem in September.

“We will be making our ROCs payments to Ofgem in full and we will be doing that in monthly instalments starting in October. This means that as a business we are in a robust and stable position to continue to grow and challenge the big 6 energy providers in the UK.”

The other three firms being chased by Ofgem are Toto Energy, Gnergy, and Delta Gas and Power.