Cadent Gas, Scottish Gas Networks and Southern Gas Networks will pay the money after failing to hit a target of attending reports of gas leaks within one or two hours, depending on circumstances.
The companies are required to hit this target in 97% of cases, but between 2022 and 2023, Southern Gas Networks missed the targets in 5.1% of cases of uncontrolled gas escapes and 4.1% of cases in controlled gas escapes in the winter of 2022-23. The other two businesses missed their targets by smaller percentages.
Southern Gas Networks will pay a £5.8m fine, with Cadent Gas paying £1.5m and Scottish Gas Networks £700,000.
The money will go to the Energy Industry Voluntary Redress Fund (EIVRF), which funds projects and schemes to support energy consumers, particularly those in a vulnerable situation.
Significant risks
Cathryn Scott, director of market oversight and enforcement at Ofgem, said the risk to households and businesses if gas leaks aren’t investigated quickly “is significant”.
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She said: “It’s right that the companies involved have acknowledged the seriousness of missing these targets.
“We’re confident the companies have improved their systems and processes to make sure this doesn’t happen again and have demonstrated their commitment to this by meeting their targets in the two years since the breach.
“We take compliance with our rules incredibly seriously, and as demonstrated with this case, will not hesitate to take action when companies fail to meet their obligations across the board.”
