Gas distributor Cadent to refund £54m to customers, Ofgem says

 
Courtney Goldsmith
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Ofgem decided to reduce Cadent's allowances (Source: Getty)

Gas distribution firm Cadent, formerly National Grid Gas Distribution, has agreed to refund £54m of price control allowances to customers, according to industry regulator Ofgem.

Ofgem accepted Cadent's offer to refund £54m to customers for its 2013-2021 price control over cancelled investments in its central London gas network.

The watchdog sets price controls for Britain’s energy network companies, which set the amount of money companies that run the network operators can earn over a period of time.

Read more: The UK's oil and gas sector is starting to show signs of growth

The companies recover this money through network charges on consumer energy bills.

The price controls encourage companies to spend money on upgrading and maintaining Britain's electricity network.

Cadent, which owns the gas distribution networks in north London, central England, the east of England and northwest England, was renamed earlier this year after National Grid sold the majority stake in the business to a consortium of investors called the Quad Gas Group.

Read more: Government set to wave through takeover of National Grid gas network

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