National Grid has agreed to pay £3 million to a fuel poverty charity after failing to meet gas network repair targets, Ofgem said.
The regulator has also cut the amount of revenue National Grid can earn from its gas distribution networks by £2 million after the company failed to meet targets on customer satisfaction.
National Grid will pay the £3 million to National Energy Action (NEA) after it failed to meet the target for repairing non-urgent gas escapes on its gas distribution networks. It missed the
target for carrying out the repairs on three of its four distribution networks for two years from 2013.
Ofgem said it had been assured by National Grid that no lives were put at risk by the failures.
Ofgem’s acting senior partner for networks, Maxine Frerk, said: “National Grid recognises that it did not have proper management processes in place to meet these targets.
“National Grid has assured Ofgem that it has taken sufficient action to ensure they can be achieved in the future.
“This payout is a signal to all energy network companies that they must meet outputs in their price control and deliver good service for customers.”