Ofgem said fine would have been higher but for the full co-operation of National Grid Gas and warns misreporting will not be tolerated.
Ofgem has today announced that it intends to impose a penalty of £8m and to find National Grid Gas in breach of licence obligations on providing accurate information to the energy regulator.
This covers the reporting period 2005/06 to 2007/08. Ofgem takes failures by regulated companies to meet reporting obligations very seriously. This is an important part of ensuring that the “regulatory contract” is met and consumers receive value for money.
In 2006 and 2007 Ofgem’s chairman, Lord Mogg, wrote to all network companies to emphasise the importance of accurate regulatory reporting, in response to which the chairman of National Grid gave assurances about the quality and integrity of National Grid’s systems of internal control.
The proposed level of penalty on National Grid Gas would have been higher had it not been for the action NGG took first in bringing the misreporting to Ofgem’s attention quickly, and subsequently in its co-operation with the investigation and actions to put things right. National Grid has not benefitted financially from the misreporting and any consumer detriment has already been corrected.