National Grid hit with £3m fine for failing gas repair targets

National Grid has agreed to pay £3 million to fuel poverty charity National Energy Action after failing to meet its gas repair targets for the second year running.

National Grid’s gas distribution arm missed the target for carrying out non-urgent repairs on three of its four distribution networks, the only GDN to do so.

Ofgem has also cut the amount of revenue National Grid can earn from its gas networks, and charge its customers, by £2 million, for failing to meet customer satisfaction targets across all four of its distribution businesses.

Three of its distribution businesses also did not reach the target score for connection surveys by customers on work completed.

The regulator said National Grid recognises it did not have “proper management processes in place” to meet the targets, but assured its failure did not put any lives at risk.

Ofgem’s acting senior partner Maxine Frerk said: “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.

“National Grid has assured Ofgem that it has taken sufficient action to ensure they can be achieved in the future.”

Ofgem today reported on the performance of all eight gas distribution networks in the second year of the current price control.

All GDNs, except for National Grid, achieved or substantially exceeded their targets in all areas.

National Grid announced in November last year its proposed sale of a majority stake in its gas distribution businesses.

Reports earlier this year suggest a consortium of investors including Borealis Infrastructure, Wren House, part of Kuwait’s sovereign wealth fund and the Universities Superannuation Scheme is preparing a bid.