Energy groups face huge fines for ‘neglecting’ customers
A NUMBER of gas and electricity networks, including the National Grid, could be hit with fines totalling more than £140m by the energy watchdog after they were accused of failing to put forward business plans that looked out for consumers.
Ofgem said in its recent price determination, in which it sets out how much networks are allowed to take in profits for the next five years, that a number of network companies should be fined millions for submitting plans that lacked sufficient detail and clarity.
National Grid confirmed it was one of the companies fined “tens of millions” by Ofgem.
Nicola Shaw, executive director of the National Grid, said: “Ofgem told us that we didn’t provide what they asked for, but they don’t realise that maybe that has something to do with them.”
Ms Shaw said the regulator gave its latest guidance a month before it was due to submit its business plan.
The regulator has proposed halving the returns networks will be allowed to make from next April in its latest price determination – which is currently out for consultation.
The energy networks are expected to challenge the decision.