Notice of decision to impose a financial penalty on Northern Gas Networks Ltd following our investigation into its compliance with Standard Special Condition D10 of its Gas Transporters Licence

Decision Investigation

The Gas and Electricity Markets Authority ("the Authority") has confirmed its decision to impose a financial penalty on Northern Gas Networks Ltd (NGN) 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 NGN’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 NGN failed to comply with the Gas Emergency Standards during the Relevant Period. NGN attended, on average, 91.6% of uncontrolled and 94.3% of controlled gas escapes within the time limits. This is 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 £900,000 on NGN.

Further details can be found in the final penalty notice.