npower fined £125,000 by Ofgem for reporting error on RO schemes

19 May 2014 (Last Updated May 19th, 2014 18:30)

The UK energy regulator Ofgem has imposed £125,000 (€153,000) fine on energy supplier npower for providing incorrect data on the government’s feed-in tariff (FIT) and Renewables Obligation (RO) schemes.

The UK energy regulator Ofgem has imposed £125,000 (€153,000) fine on energy supplier npower for providing incorrect data on the government's feed-in tariff (FIT) and Renewables Obligation (RO) schemes.

Ofgem said the company had identified and reported the error and the size of penalty takes into account that npower has already voluntarily forfeited RO certificates valued at £896,900 and will make a late payment of £63,000 to account for the FIT reporting error.

The reporting errors by npower were due to incorrect information being used to calculate the amount of power supplied to customers, while this resulted in npower underreporting the amounts by 0.08% in 2010-11 and by 0.28% in 2011-2012.

According to the Ofgem, npower has taken steps to prevent this from reoccurring and this error was not repeated in 2012/2013.

"npower has taken steps to prevent this from reoccurring and this error was not repeated in 2012/2013."

As per the government's RO scheme, power suppliers have to source a proportion of electricity supplied to British customers from renewable energy sources.

While under the FIT scheme, energy companies are required to provide an incentive to small-scale generators of renewable energy in the form of FITs payments.

The UK energy regulator administers RO and FIT schemes on behalf of the government and requires suppliers to provide accurate supply data.

Ofgem supports the Gas and Electricity Markets Authority, the regulator of the gas and electricity industries in Great Britain. The authority's powers and duties are largely provided for in statute, principally the Gas Act 1986, the Electricity Act 1989, the Utilities Act 2000, the Competition Act 1998, the Enterprise Act 2002, and the Energy Act 2000.

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