Ofgem hit British Gas with £11.1m penalty

4 December 2014

British Gas guide Ôjargon free' And now, in 'fines that will eventually be passed on to the customer through increases of their bills' news, and Ofgem have hit British Gas with a penalty to the tune of £11.1m after they failed to meet energy efficiency targets.

The regulator said that British Gas had failed to meet mutually agreed deadlines to insulate homes under two energy efficiency schemes that took place until the close of 2012. While the company eventually reached the target, their messing about meant that thousands of homes missed out during the winter of 12/13.

You may recall that, only last week, the power generators Drax got slapped with a £28m fine for failing to meet similar targets under the Community Energy Saving Programme (CESP). Similarly, it looks like InterGen will have to cough-up £11m too.

Other energy companies you will have heard of are looking at fines too, including SSE, Scottish Power and GDF/Suez.

Sarah Harrison from Ofgem said: "British Gas's failure to deliver two environmental obligations on time is unacceptable. Thousands of households had to wait for energy efficiency measures, like insulation, to be installed during the winter. The payment reflects British Gas's failure to meet its obligations on time but also recognises its commitment to put things right."

British Gas said that we shouldn't hate them though, because they delivered more than they were asked to do, even if they were tardy. Claire Miles, managing director of British Gas New Energy, said: "We're pleased that in the end we managed to help more vulnerable people under this scheme than was required."

The £11.1m will be donated to charity to help vulnerable people with energy costs and the like.

TOPICS:   Utilities   Government

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