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UK regulator fines oil companies for failing to meet biofuel standards

28/01/2011

UK regulator, the Renewable Fuels Agency (RFA), has issued the subsidiaries of two major oil companies with penalties for not meeting biofuel standards. Under the Renewable Transport Fuels Obligation (RTFO), companies supplying over 450,000 l of petrol or diesel to the UK market have to register with the RFA and match their supply with a percentage of biofuel, as well as providing information on its carbon intensity and sustainability.

UK regulator, the Renewable Fuels Agency (RFA), has issued the subsidiaries of two major oil companies with penalties for not meeting biofuel standards.


Under the Renewable Transport Fuels Obligation (RTFO), companies supplying over 450,000 l of petrol or diesel to the UK market have to register with the RFA and match their supply with a percentage of biofuel, as well as providing information on its carbon intensity and sustainability.


Aral Direkt, which was wholly owned by the BP Group at the time, and Total Additifs et Carburants Speciaux, part of the Total group, have both been fined £5000 for failing to register with the RFA.


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But both companies have, however, meet their obligations subsequently – which is reflected in the relatively low fine, says the RFA.


However, Yorkshire Petroleum Company (Yopec) has been fined the full £50,000 penalty for failing to meet its obligations under the RTFO.


The RFA says that if the outstanding amount owed by Yopec is not received in the next week further action will be taken, which could even include winding up the company.


“We will always come down hard on those who fail to meet their obligation, as this is at the heart of the RTFO as a carbon reduction measure,” says David Calderbank, head of regulation at the RFA. “We take these breaches very seriously and will take whatever action is within our power to ensure compliance.”


Yopec has indicated that it intends to appeal against the RFA’s decision.


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