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Ofgem slaps “unacceptable” British Gas with £11.1m penalty
British Gas has been penalised to the tune of £11.1m by Ofgem after it failed to meet energy efficiency targets, the regulator said today.
Ofgem said British Gas had not reached targets on insulating homes under two efficiency schemes that ran until 2012. It delivered on 62.4 per cent of its Community Energy Savings Programme target, and 99 per cent of its Carbon Emissions Reduction Target.
The news comes less than a week after it handed Drax, the power station, and Intergen, the power plant operator, with fines totaling £39m. Drax's penalty amounted to £28m, the largest fine ever handed down by the regulator.
Sarah Harrison, Ofgem's senior partner with responsibility for enforcement, said British Gas' failure was "unacceptable".
Thousands of households had to wait for energy efficiency measures, like insulation, to be installed during the winter. The payment reflects British Gas' failure to meet its obligations on time but also recognises its commitment to put things right.
Claire Miles, managing director of British Gas New Energy, added:
We take our responsibilities to our customers very seriously and do all we can to help them keep their bills as low as possible. Providing free insulation is a big part of that, as well as giving our customers ways to manage and understand their energy use through smart meters and other new technologies.