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British Gas told to cough up £11.1m by Ofgem

The penalty is set to be imposed as a result of the energy supplier failing to meet its energy efficiency targets

British Gas

British Gas is set to pay an £11.1m penalty

Energy regulator Ofgem has issued Centrica, the company which owns British Gas, a £11.1m penalty for failing to meet deadlines for insulating a given number of British homes.

The penalty is related to two energy efficiency programmes which ran until the end of 2010. Although the energy giant did eventually meet its targets, thousands of homes missed out on the energy efficiency improvements during the 2012 – 13 winter.

Ofgem: Unacceptable delay

Sarah Harrison, senior partner at Ofgem, said: “British Gas’s failure to deliver two environmental obligations on time is unacceptable.

“Thousands of households had to wait for energy efficiency measures, like insulation, to be installed during the winter. The payment reflects British Gas’s failure to meet its obligations on time but also recognises its commitment to put things right.”

The £11.1m will be used to help vulnerable households cover their energy costs and install energy improvements.

More households helped in the long run

Speaking on the issue, Claire Miles, managing director of British Gas New Energy, said: “We’re pleased that in the end we managed to help more vulnerable people under this scheme than was required.”

The supplier said that although it missed the 2012 deadline it had subsequently delivered more energy efficiency measures than required to households. It added that customers benefitted from an extra £110m worth of savings on their energy bills as a result.

British Gas are not the only company concerned and SSE, ScottishPower and GDF/ Suez are also expected to pay penalties in the next few weeks.

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