Investigation into Cadent Gas Limited and its compliance with its obligations under its gas transporter licence (Standard Special Conditions A40, A50 and A55) and as a consequence section 9 of the Gas Act 1986

Opened:
Apr 2018
Closed:
May 2019

The Gas and Electricity Markets Authority (“the Authority”) has decided to close its investigation into Cadent’s compliance with its obligations under its gas transporter licence (Standard Special Conditions A40, A50 and A55) and Section 9 of the Gas Act 1986 by way of alternative action.

The decision was taken in accordance with our Enforcement Guidelines, following Cadent taking steps to investigate and rectify the issues at a cost of £3.6m which they covered in full, taking satisfactory improvement actions, and in addition offering to make a payment of £3m into the Energy Saving Trust Voluntary Redress Fund in recognition of its shortcomings.

SSC A40 and A55 require robust processes to be in place to allow complete and accurate data to be collected and recorded when required to be submitted to Ofgem. 

Section 9 of the Gas Act 1986 requires a licensee to develop and maintain an efficient and economic pipeline system for the conveyance of gas.

Further details can be found in the decision document.