Investigation into British Gas' compliance with reporting requirements under the Renewables Obligation

Opened:
May 2010
Decision Proposed:
Jul 2011
Closed:
Nov 2011
Company:
British Gas
Regulation Area:
Sectoral Regulations
Breach Area:
Misreporting

The Gas and Electricity Markets Authority ("the Authority") has confirmed its decision to impose a financial penalty on British Gas (BG) for its failure to report accurate supply data as required under the Renewables Obligation for England & Wales and Scotland.

By 1 July each year, electricity suppliers are required to inform the Authority of the amount of electricity supplied to customers in England & Wales and Scotland during the previous obligation period (financial year).

Ofgem’s investigation concerned BG’s reporting of electricity supply data from the first obligation period in 2002-03 to the seventh obligation period in 2008-09.

The Authority found that:

• BG misreported the amount of electricity supplied to customers in England & Wales and Scotland each year from the first obligation period in 2002-03 to the seventh obligation period in 2008-09.

• The misreporting amounted to 0.62% of electricity supplied per year on average; and as a result of the misreporting other market participants suffered an aggregate loss of £2.8m over the 7-year period.

BG took appropriate action to address any market impact caused by the error.

The Authority considered it appropriate to impose a financial penalty for these contraventions. The Authority decided to impose a financial penalty of £1 million on BG.

Further details can be found in the final penalty notice.