British Gas hit with £11.1 million fine
04/12/2014
British Gas has been fined £11.1 million by regulators Ofgem for failing to meet energy efficient targets on time.
The energy supplier failed to meet deadlines to insulate homes under two energy efficient schemes that ran till the end of 2012. Although British Gas did manage to meet its targets, it missed the deadline meaning thousands of homes were left without insulation during the winter of 2012-2013.
This comes after power generator, Drax, was hit with a record £28m penalty and InterGen with an £11 million fine for failing to meet targets under the Community Energy Saving Programme (CESP), part of the government's Home Energy Saving Programme.
The £11.1 million fine will be donated to charities, which help vulnerable people with energy costs and energy efficiency improvements.
Sarah Harrison, an Ofgem senior partner, 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."
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."
Other energy companies such as SSE, Scottish Power and GDF are expected to be hit with fines from Ofgem later in the week.
Need Financial Advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
Why are MPs expenses treated differently by the taxman?
The revelation that MPs are able to claim a second home allowance on a property which in the eyes of the taxman is their main residence has confused many across the UK. It is also worth noting that MPs expenses do not incur any tax charges and are in fact a tax-free "gravy train" which has mushroomed over the last few years. So why are MPs expenses treated differently by the taxman?
...
Royal Bank of Scotland set to wield the axe
It has been revealed that Royal Bank of Scotland boss Stephen Hester is set to announce one of the most severe cost-cutting exercises in the history of the UK banking sector. If the rumours are correct, this week could see between 10,000 and 20,000 job cuts at Royal Bank of Scotland which would decimate the workforce. The company is set to announce losses rumoured to be approaching £30 billion af...
Read MoreDivorce lawyers set for the busiest day of the year
A number of surveys have revealed that the first Monday of a new year is the busiest day for divorce lawyers across the UK as pressure over Christmas and New Year often comes to a head. As the UK recession continues to grab hold it would appear that this year could be a record time for divorce lawyers across the country amid signs of financial meltdown and increased employment pressure.
Petrol prices set to fall to 3 year low
It looks as though 2009 could be an interesting year for motorists in the UK after the price of crude oil fell to just $39 a barrel yesterday. The price war which was instigated by Tesco has been matched by many of the leading UK fuel providers such as Total and Shell with many more are expected to follow. The AA has confirmed that the average cost of petrol fell in the last week of December from...
Read MoreDebt is officially bad for your health!
The Consumer Credit Counselling Service has today issued a report into debt in the UK and the effect this has upon relationships and underlying health. The survey found that 37% of those questioned have had problems with their partners because of financial pressure and 22% said this did have an impact upon their relationship with their children. However, it does appear that many people are hiding...
Read More