Investigation into National Grid Gas plc's compliance with Standard Special Condition D10 of its Gas Transporters Licence

Opened:
Oct 2011
Decision Proposed:
Dec 2011
Closed:
Feb 2012
Company:
National Grid
Regulation Area:
Sectoral Regulations
Breach Area:
Emergency Standards

The Gas and Electricity Markets Authority ("the Authority") has confirmed its decision to impose a financial penalty on National Grid Gas plc (NGG) for its failure to comply with Standard Special Condition D10 of its Gas Transporters Licence with regards to timely attendance at uncontrolled gas escapes.

In accordance with SSC D10 paragraph 2(g), Gas Distribution Network operators ("GDNs") are required to attend 97 per cent of uncontrolled gas escapes within one hour and 97 per cent of controlled gas escapes within two hours ("the Gas Emergency Standards").

The investigation concerned NGG’s compliance with the Gas Emergency Standards for the period covering 1 April 2010 to 31 March 2011 ("the Relevant Period").

The Authority found that for the Relevant Period:

• NGG failed to meet the standard for uncontrolled gas escapes during the Relevant Period in all four of its Distribution Networks (North West of England, East of England, West Midlands and London). In North West of England NGG attended, on average, 92.1% of uncontrolled gas escapes within the relevant time limit required by the Gas Emergency Standards. Similarly, in East of England, West Midlands and London, NGG reached annual performance levels of 95.2%, 95.3% and 96.1% respectively.

• NGG failed in two of its Distribution Networks (North West of England and East of England) to meet the standard for attending controlled gas escapes within the relevant time limit required by the Gas Emergency Standards. In North West of England NGG attended, on average, 95.1% of controlled gas escapes within the relevant time limit required by the Gas Emergency Standards. Similarly, in East of England, NGG reached an annual performance level of 96.8%.

These failings constitute a breach of SSC D10 paragraph 2(g).

The Authority considered it appropriate to impose a financial penalty for these contraventions. The Authority decided to impose a financial penalty of £4.3 million on NGG.

Further details can be found in the final penalty notice.