National Grid has agreed with Ofgem to pay out £3 million to fuel poverty charity National Energy Action (NEA) after failing to meet the target for repairing non-urgent gas escapes on its gas distribution networks.
Ofgem 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 missed the target for carrying out non-urgent repairs on three of its four distribution networks. The target was missed for the two years 2013/14 and 2014/15. National Grid has assured Ofgem that no lives were put at risk by their failure to meet this output.
Maxine Frerk, acting senior partner, networks, Ofgem, 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 pay-out is a signal to all energy network companies that they must meet outputs in their price control and deliver good service for customers.”
The failures happened during the period when CEO-designate Jon Pettigrew was in charge of the gas distribution networks. Pettigrew joined National Grid as a graduate trainee in 1991 and will replace the current chief executive, Steve Halliday, at the end of the month. Halliday is retiring after ten years as chief executive.