National Grid agrees £8m Ofgem penalty

 
City A.M. Reporter
BRITAIN’S energy regulator Ofgem yesterday imposed an £8m fine on National Grid for misreporting information during a gas mains replacement programme between 2005 and 2008.

Ofgem will hold a 21-day consultation period on the fine to consider comments from the public.

If the consultation concludes in favour of the penalty, National Grid will be expected to pay the fine this financial year, Ofgem said.

The gas network operator did not benefit financially from the misreporting and all detriment to consumers had already been corrected, the regulator said.

National Grid has accepted the fine and does not intend to appeal against it, a spokesman said.

The energy network company is accused of various cases of filing inaccurate information, such as claiming to have completed work in one year when it was only finished the next year, a spokesman for Ofgem said.

Another example of misreporting was that National Grid charged for completed work twice, he said.

“We are disappointed that a matter such as this should ever have arisen,” National Grid executive director Mark Fairbairn said.

“Significant enhancements have been made, including to processes and systems in the mains replacement programme within National Grid, to ensure the accuracy and completeness of the data provided to Ofgem.”