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Why won’t Ofgem collect £489m in fines over wasted electricity?

Consumers paying for energy they didn’t receive – but Ofgem won’t impose fines

Ofgem may not fine operators £489mEnergy watchdog Ofgem has the ability to penalise grid operators for failing to reduce leakage, which occurs when energy is transmitted from power stations to users.

Although a report  shows that not only did grid operators fail to meet leakage reduction targets, Ofgem may not collect the £489m worth of ‘lost’ energy – energy that consumers paid for but did not receive.

The possible decision has caused British Gas owner Centrica to speak out. The money would have been returned to the suppliers, who would in turn give it back to households.

Ofgem states that the data collected is unreliable, and would like to give the operators the benefit of the doubt, but has not yet come to a decision.