Neon Reef Ordered to pay £350k by Sunday 31 Oct 2021

dbks

https://www.ofgem.gov.uk/sites/default/files/2021-10/Neon Reef- Provisional Order- dated 28 October 2021.pdf

What's their excuse this month? Surely they can't again claim the invoice was sent to the wrong company? They've already had 2 months to pay this amount.

dbks

Here's a list of all the companies that owe money by the same date for similar reasons:

Suppliers

	Amount owed
Ampoweruk	£3,590,236.65
Whoop Energy	£56,306.25
Delta Gas and Power	£381,030.65
Entice Energy	£173,923.75
MA Energy	£941,835.25
Neon Reef	£349,148.80
Together Energy	£12,402,390.00

https://www.ofgem.gov.uk/publications/ofgem-orders-seven-suppliers-pay-ps179m-unpaid-renewables-obligations-payments

dbks

Together Energy customers may need to start worrying, despite previous public announcements by TE that they were feeling relatively safe during this energy crisis.

TE informed Ofgem yesterday that they will not be able to make their payment by the late payment deadline.

Neon Reef, on the other hand, haven't bothered responding to Ofgem for the past 2 weeks over the amount they owe. (Good to learn it's not just their customers NR are ignoring at this time)


Edit to add:
Entice Energy have also confirmed to Ofgem that they will not be able to pay the £174k they owe by the late payment final deadline either.

DiseasedBunny

That’s a lot of spondoolicks from TE! AM power not a small amount either 

MWT

dbks said:

Neon Reef, on the other hand, haven't bothered responding to Ofgem for the past 2 weeks over the amount they owe. (Good to learn it's not just their customers NR are ignoring at this time)

I suspect they will continue to ignore Ofgem and just pay at the last possible moment as long as their investors remain happy to support the cash-flow...

QrizB

dbks said:

Here's a list of all the companies that owe money by the same date for similar reasons:

https://www.ofgem.gov.uk/publications/ofgem-orders-seven-suppliers-pay-ps179m-unpaid-renewables-obligations-payments

From that pdf:

Earlier this month Ofgem consulted on issuing final orders for Ampower, Whoop Energy, Goto Energy, Home Energy Trading and Colorado Energy for unpaid RO payments.

Home Energy Trading has paid its obligation in full, whilst Goto Energy and Colorado Energy have since ceased to trade, and therefore the decision has been taken not to issue final orders to these suppliers.

Ampower and Whoop Energy have been issued with final orders and have until 31 October 2021 to make the outstanding payments, plus interest.

and

Five additional active suppliers are yet to meet their obligation and were unable to provide satisfactory assurances that they will be in a position to make the necessary payments by 31 October 2021.

These suppliers are Delta Gas and Power, Entice Energy, MA Energy, Neon Reef, and Together Energy, and they have been issued with provisional orders

The five suppliers failed to pay into the buy-out fund or present the required number of Renewables Obligation Certificates (ROCs) by the initial deadlines of 31 August and 1 September 2021. 

They are now compelled to pay into the buy-out fund by 31 October 2021 with interest. If they do not pay, Ofgem could start the process of revoking their licences to supply energy.

Paging @GingerTim ..

wittynamegoeshere

I'm forecasting seven bankrupt companies shortly after the 31st.

Do I get a gold star for my razor-sharp analysis skills?

Still, that's another £17 million in the pockets of company directors, to be repaid by all of us, on top of the rest.

My only regret in life is that I never started an energy supply company from my spare bedroom like so many others did.  Free money for those who know what they're doing.

GingerTim

QrizB said:

dbks said:

Here's a list of all the companies that owe money by the same date for similar reasons:

https://www.ofgem.gov.uk/publications/ofgem-orders-seven-suppliers-pay-ps179m-unpaid-renewables-obligations-payments

From that pdf:

Earlier this month Ofgem consulted on issuing final orders for Ampower, Whoop Energy, Goto Energy, Home Energy Trading and Colorado Energy for unpaid RO payments.

Home Energy Trading has paid its obligation in full, whilst Goto Energy and Colorado Energy have since ceased to trade, and therefore the decision has been taken not to issue final orders to these suppliers.

Ampower and Whoop Energy have been issued with final orders and have until 31 October 2021 to make the outstanding payments, plus interest.

and

Five additional active suppliers are yet to meet their obligation and were unable to provide satisfactory assurances that they will be in a position to make the necessary payments by 31 October 2021.

These suppliers are Delta Gas and Power, Entice Energy, MA Energy, Neon Reef, and Together Energy, and they have been issued with provisional orders

The five suppliers failed to pay into the buy-out fund or present the required number of Renewables Obligation Certificates (ROCs) by the initial deadlines of 31 August and 1 September 2021. 

They are now compelled to pay into the buy-out fund by 31 October 2021 with interest. If they do not pay, Ofgem could start the process of revoking their licences to supply energy.

Paging @GingerTim ..

Just getting my dark cloak and scythe out of the cupboard...

dbks

MWT said:

dbks said:

Neon Reef, on the other hand, haven't bothered responding to Ofgem for the past 2 weeks over the amount they owe. (Good to learn it's not just their customers NR are ignoring at this time)

I suspect they will continue to ignore Ofgem and just pay at the last possible moment as long as their investors remain happy to support the cash-flow...

Who are their investors of which you speak? And do they have a magic money tree?

The only investors I can identify are the 3 directors.

To put the £350k demand into perspective, the financial position of the whole company in June 2020, the last accounts they have filed, show:

Assets: £85k
Debts: £158K
Bottom line: £73k in debt.

So to expect them to find £350k in 48hours is a very big ask indeed, especially over a weekend.
Even if they do magic up the money, can they actually transfer that amount of dosh during a period when the banks are closed?

wittynamegoeshere

They'll be taking more money every day from all the new customers they're attracting into their sticky web.

Just as long as new signups come along faster than last month's bills they can probably keep the plates spinning.  It's entirely possible that all those recent signups will give them enough cash to pay the bill if it's necessary.

Until they go bust with massive debts of course.

MWT

wittynamegoeshere said:

Still, that's another £17 million in the pockets of company directors, to be repaid by all of us, on top of the rest.

It really doesn't work like that, the directors may well be walking away owed a lot of money themselves as well.

Every company failure is different and you can expect the administrators to scrutinize payments to directors and related parties for months before the failure, but in good companies that have failed due to these sudden changes in the market, you will often find the directors took the hit first to keep the staff paid, so it is a little offensive to assume that just because someone has the title 'director' that they are walking away with all the cash...