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

Investigation
  • Open
  • Decision proposed
  • Closed
Publication date
Closed date
Company
British Gas Trading Limited
Decision
Notice of decision to impose a financial penalty on British Gas following our investigation into its compliance with reporting requirements under the Renewables Obligation

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.

Main document

Proposal of the Gas and Electricity Markets Authority to impose a financial penalty, following an investigation into compliance by British Gas Trading Limited with reporting requirements under the Renewables Obligation [PDF, 152.42KB]