Exempt Supplier status is the legal basis for your ability to supply electricity without a licence. Exceeding the threshold means you're no longer covered by that exemption. Supplying over 5MW/h (or 2.5 MW/h to domestic) is a criminal offence.
1. Loss of RED Plus payments. Your RED Plus revenue depends on Exempt Supplier status remaining valid. If you no longer hold Exempt Supplier status, those payments stop. Because maintaining that status is a condition of your agreement, any overpayments already made may be reclaimed by tem.
2. Potential regulatory action. Ofgem may take action if you supply electricity beyond the exempt thresholds without a licence.
If you think you, or your corporate group, are approaching either threshold: you are responsible for monitoring your own supply volumes and those of your corporate group.
If you anticipate any corporate restructuring (including ownership or control) or changes in your and/or corporate group’s supplied capacity, domestic supply volumes non-domestic supply volumes, supply arrangements, sites, meters, supplier, meter registrant, broker, sleeving provider or facilitator arrangements or other changes that could affect your compliance, please notify tem in writing as soon as possible. Please provide supporting evidence.