Energy firms pay £8m in penalties after attending some gas leaks late

Three gas distribution companies are paying a combined £8 million in penalties after failing to attend some gas emergency reports on time.

Regulator Ofgem said Cadent Gas, Scotland Gas Networks and Southern Gas Networks have voluntarily agreed to pay the funds after missing their targets between 2022 and 2023.

Ofgem’s rules require companies which manage the gas network to attend reports of suspected gas leaks within one or two hours, depending on the incident, in 97% of cases.

Southern Gas Networks will pay £5.8 million, Cadent will pay £1.5 million and Scotland Gas Networks will pay £700,000.

The cash will go into Ofgem’s voluntary redress fund, which provides money for projects that support vulnerable energy consumers.

Cathryn Scott, director of market oversight and enforcement at Ofgem, said: “The potential risk to households and businesses if gas leaks aren’t investigated quickly is significant, so 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.”

Ofgem said it opened an investigation into the three companies after they self-reported missing their targets.