Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Gas maintenance firm to pay £44M for poor performance

cadent gas network van north london (2)

Energy regulator Ofgem has fined the UK’s largest gas distribution operator Cadent £44M for failing to keep customers supplied during repair works and for errors in record keeping.  

Cadent operates and maintains four of the UK’s eight gas networks. It has accepted Ofgem’s rulings.  

The company has agreed to pay out a total of £24M, including fines, £6M in compensation to customers and £4.8M to set up a new team to improve service in high-rise buildings.  

In addition to the £24M payout, Cadent has committed to setting up a community fund, worth an estimated £20M, to support consumers in vulnerable circumstances.  

The fines follow news that the company is to axe 10% of its workforce across the country, cutting 400 jobs to slash costs. 

Ofgem began investigating Cadent in 2018, when it discovered that the company was increasingly leaving residents in blocks of flats without gas for longer than necessary while gas pipes were being repaired. 

Earlier this year Cadent told Ofgem that, over a six-year period, it failed to pay compensation to a possible 12,000 residents left without gas for over 24 hours.  

Ofgem chief executive Dermot Nolan said: “Ofgem has worked with the company, which is under new ownership and has given commitment to improve its operations to put customers at the heart of the business, to help it address its failings and prevent further harm to customers’ interests. 

“Cadent has also agreed to make a significant financial contribution to customers as redress in recognition of its past failings. This is a move we welcome.” 

Cadent chief executive officer Steve Hurrell added: “We acknowledge that in the past, we have fallen short of customer expectations and the higher standards we have now set ourselves; for this we are sorry.

“It is important within the energy sector to have a strong regulator to ensure customer interests are protected and we are working closely with Ofgem to restore confidence in us and build trust in our future plans.”  

Like what you’ve read? To receive New Civil Engineer’s daily and weekly newsletters click here. 

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.