Two gas distribution companies have been fined nearly £6 million for failing to respond to gas leaks on time last winter, Ofgem revealed today.
National Grid Gas (NGG) has been fined £4.3 million and Northern Gas Networks (NGN) £900,000. The regulator said the different levels of penalty reflect the fact NGG owns four networks while NGN owns just one.
According to Ofgem the distribution firms, which are in charge of delivering energy sold by suppliers to the customer’s property, failed to meet the mandatory targets, as set out in the gas transporter license. Firms are required to respond to 97% of uncontrolled gas escapes within one hour and gas escapes that have been brought under control within two hours.
Between April 2010 and March 2011 NGG, however, reached between 92.1% and 96.1% of uncontrolled gas escapes, while NGN met just 91.6%. The pair similarly missed their controlled gas escape targets. Though no one was hurt as a result.
Rachel Fletcher, of Ofgem said: ‘Consumers pay for these important service standards and have a right to expect that they will be met. Today’s announcement sends a clear message to energy network companies that they risk a financial penalty from Ofgem if they don’t meet their obligations to continue to uphold Britain’s very high standards in responding to gas escapes on time’.
‘Both companies need to plan better for bad weather and ensure that adequate resources and contingency plans are in place to meet the annual targets,’ she added.
The fines would have been higher had the companies not cooperated with the investigation and taken action to increase resources, Ofgem said.
