26 February 2008
National Grid has said it is challenging the £41.6 million fine which was imposed by Ofgem yesterday.
The group lodged an appeal, following the gas and electricity industry regulator's ruling that National Grid had restricted competition in the domestic gas meter market and would face a fine.
Ofgem's chairman, Sir John Mogg, said National Grid's "abuse" of its dominance in the market had "prevented suppliers from contracting with other companies for cheaper metering deals" and could also discourage the installation of smart meters.
In response, National Grid's chief executive, Steve Holiday, remarked that "there is no evidence" that the firm's practices harmed competition or consumers.
Ann Robinson, director of consumer policy at uSwitch.com, told the Independent that it was hoped that the appeal would not delay the introduction of meters which give consumers an accurate reading of how much gas and electricity they are using.
"We have been waiting ten years for the introduction of smart meters," she added.