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British Gas hit with £11.1 million fine


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.

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