Embattled PV developer Solarstrom has blamed the regulator Ofgem for its UK arm entering administration.

Solarstrom subsidiary SAG Solar UK, has been forced to appoint an administrator at the request of a creditor, the company confirmed on Wednesday.

A company spokeswoman told Solar Power Portal's sister site PV Tech that the latest problem was the result of a permitting hold-up by Ofgem for a PV project that has already been grid-connected.

“We have a sales contract and one of the conditions of closing that sale was the accreditation of the project. That accreditation has been delayed. As a result our liquidity flows are not on time and outstanding bills that needed to be paid could not be. We’re still hoping to get that accreditation in time to get the liquidity that we need to pay the creditors,” she said.

“Based on the normal process, it should have been accredited already and we’re trying to find out what the problem is because we haven’t been made aware of any problem. It’s not clear to us why the project has been held up.”

Asked whether the company was considering legal action against the UK energy regulator Ofgem, the spokeswoman speculated that the permitting process was not obligated to be completed within a given time frame.

“I’m sure the legal department will look into that but I’m not sure that there is a possibility to hold them liable,” she said.

The German firm began insolvency proceedings in December after talks on a separate round of proposed UK power plants collapsed and the €20 million (£16.5 million) of project funds from Germany and Italy were delayed.

The Solarstrom group has until mid-March to present its restructuring plan.