Three energy firms fined £8m by Ofgem for attending gas leaks late
Cadent Gas, Scotland Gas Networks and Southern Gas Networks agreed to pay a combined £8 million in penalties
Three gas distribution companies are paying a combined £8 million in penalties after failing to attend to some gas emergencies on time.
Cadent Gas, Scotland Gas Networks and Southern Gas Networks all voluntarily agreed to pay the funds after missing their targets between 2022 and 2023, Ofgem said.
The regulator said it opened an investigation into the three companies after they self-reported missing their targets.
Ofgem’s rules require companies which manage the gas network to attend to reports of suspected gas leaks within one or two hours, depending on the incident, in 97 per cent of cases.
Southern Gas Networks will pay £5.8 million to Ofgem’s Energy Redress Fund, Cadent will pay £1.5 million, and Scotland Gas Networks will pay £700,000.
The cash will go into Ofgem’s voluntary redress fund, which provides money for projects that support vulnerable energy consumers.
Cathryn Scott, director of market oversight and enforcement at Ofgem, said the “potential risk to households and businesses if gas leaks aren’t investigated quickly is significant, so it’s right that the companies involved have acknowledged the seriousness of missing these targets”.
“We’re confident the companies have improved their systems and processes to make sure this doesn’t happen again and have demonstrated their commitment to this by meeting their targets in the two years since the breach.
“We take compliance with our rules incredibly seriously, and as demonstrated with this case, will not hesitate to take action when companies fail to meet their obligations across the board.”