Subject: Ofgem press release: TXU (UK) Ltd AND MAVERICK ENERGY Ltd FAIL TO
COMPLY WITH THE RENEWABLES OBLIGATION



R/94

1 October 2003

TXU (UK) Ltd AND MAVERICK ENERGY Ltd FAIL TO COMPLY WITH THE RENEWABLES
OBLIGATION

    * TXU (UK) Ltd and Maverick Energy Ltd have failed to comply with the
Renewables Obligation
    * Ofgem considers next steps


Energy Regulator Ofgem confirmed today (Wednesday) that TXU (UK) Ltd (in
administration) and Maverick Energy Ltd have failed to comply with the
Renewables Obligation.  Both companies failed to present ROCs or pay the
relevant buy-out.  In total, £23.6 million was due from both companies.


Managing Director for Customers and Supply, John Neilson said: Complying
with the Renewables Obligation is a requirement of a suppliers licence.

Ofgem issued Enforcement Orders last week to encourage compliance with the
Renewables Obligation.  Both TXU (UK) and Maverick Energy have failed to
discharge their responsibilities.  As a consequence, the Authority will
need to consider what further action it might take, including the option of
financial penalties.

We welcome the announcement by the Energy Minister, Stephen Timms, on 30
September that the DTI will consult industry on proposals to minimise the
impact of any future shortfall on the renewables market, and that it will
take legislative action to address the issue of late payment.

Ends

Notes to Editors

1.      On 12 August 2003, Ofgem issued a statement informing the market
that the administrator for TXU (UK) Ltd had not been able to confirm
whether TXU would be able to comply with their Renewables Obligation and
that as a result there was a potential shortfall of around £20 million to
the buy-out fund for the first Obligation period.

2.      On 25 September 2003, Ofgem issued Provisional Enforcement Orders
to the administrators of both TXU UK Ltd (in administration) and Maverick
Energy Ltd.  Under the terms of the Enforcement Orders both companies had
until 30 September to comply with the requirements of the Renewables
Obligation in respect of the year to 31 March 2003.
3.      The term Renewables Obligation in this press release is used to
cover both the Renewables Obligation and the Renewables Obligation Scotland.
   4.      Ofgem has responsibility for implementing the Governments
Renewables Obligation, which started in April 2002.  The Obligation sets a
target for electricity suppliers to source at least part of their
electricity from renewable generators.  This target starts at 3 per cent of
electricity supplied to customers in 2002-2003 and reaches 10.4 per cent in
2010-2011.
         5.      Ofgem is the Office of the Gas and Electricity Markets,
regulating the gas and electricity industries in Great Britain.  Ofgems aim
is to bring choice and value to all gas and electricity customers by
promoting competition and regulating monopolies.  Ofgem is governed by the
Gas and Electricity Markets Authority.  Its powers are provided for under
the Gas Act 1986, the Electricity Act 1989 and the Utilities Act 2000.
6.      The DTI announcement, GOVERNMENT ANNOUNCES NEW MEASURES TO REASSURE
RENEWABLES OBLIGATION MARKETof 30 September, can be obtained from the DTI
website <http://WWW.DTI.gov.uk>WWW.DTI.gov.uk

7.      A copy of the TXU (UK)Ltd (in administration) statement of 30
September can be obtained from its administrator, Ernst & Young, on 020
7951 3264.


For further press information contact:

Paul Reynolds 020 7901 7225
Mark Wiltsher 020 7901 7006
Chris Smith 020 7901 7022
Out of hours contact: 0781 8457 969.

If you wish to UNSUBSCRIBE from Ofgem's mailing list:
1. Simply go to
<http://www.ofgem.gov.uk/mailmaint/>http://www.ofgem.gov.uk/mailmaint/
2. Add your details to the list using the form provided


This message may be confidential, privileged or otherwise protected from
disclosure. It does not represent the views or opinions of Ofgem unless
expressly stated otherwise.

If you have received this message by mistake, please contact the sender and
immediately delete the message from your system; you should not copy the
message or disclose its contents to any other person or organisation.

To unsubscribe from this group, send an email to:
viewsofscotland-unsubscribe@yahoogroups.com



Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.