Ofgem fines British Gas 11 1m

British Gas has been ordered to pay £11.1 million for failing to meet energy efficiency targets.

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By :  ,  Financial Analyst

British Gas has been handed a multi-million pound fine by Ofgem after missing specific targets.

The regulator has ordered the company to pay an £11.1 penalty for failing to meet energy efficiency targets on time. British Gas was found to be falling short when it came to deadlines for insulating home under two energy efficiency schemes which ran until the end of 2012. While the company has since apologised for the delay, it left thousands missing out on the measure during the 2012/13 winter.

It is the third penalty handed out by Ofgem in the past week. At the end of November, the regulator imposed its largest ever fine when it charged North Yorkshire-based firm Drax £28 million. InterGen was also given an £11 million penalty. Both companies, like British Gas, were punished for failing to hit energy efficiency targets which ran until the end of 2012.

The fines came after the companies missed targets under the Community Energy Saving Programme (CESP), part of the government's Home Energy Saving Programme. Ofgem described British Gas' conduct in the process as being "unacceptable" adding that the £11.1 million fine will be donated to charity to help vulnerable people manage their energy costs.

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."

Alongside British Gas, Drax and InterGem, Ofgem has been cracking down on energy that are failing to meet these energy efficiency standards. The likes of SSE, Scottish Power and GDF/Suez are among the companies expected to be facing penalties over the coming weeks.

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