In August 2024, Ofgem opened investigations into Cadent Gas Limited (Cadent), Scotland Gas Networks Plc (SGN Scotland) and Southern Gas Networks Plc’s (SGN Southern) alleged non-compliance with their obligations contained within Standard Special Condition D10 2(h) by failing to attend at least 97% of gas escapes in the prescribed timescales for the reporting period 2022 to 2023.
The investigation covered Cadent’s North London and Northwest regions, and SGN’s Scotland and Southern regions as the gas distribution network (GDN) operators.
In accordance with our Enforcement Guidelines, Ofgem has decided to close these investigations, by way of alternative action.
The decision to close the investigations was made as a consequence of Cadent and SGN’s agreement to admit that they breached the obligations contained within SSC D10 2(h) by failing to attend gas emergencies in the prescribed timescales.
In addition, this obligation is currently subject to consultation as part of the wider RIIO-3 consultation process, with proposed changes including that from 1 April 2026, Ofgem will require more detailed performance and workload volumes to be reported in GDNs' annual RRPs for response times to controlled and uncontrolled escapes. We are also proposing to publish monthly and annual data in our RIIO Annual Report to provide consumers with greater visibility of GDN performance over the year. We will also require the GDNs to proactively provide us with a detailed explanation if their performance falls below 97% in a month.1
Ofgem’s decision to close these investigations is subject to the following payments being made to Ofgem’s Voluntary Redress Fund:
This agreement, coupled with the actions taken by Cadent and SGN to improve their ways of working in achieving the obligations under SSC D10 2(h), now concludes this matter.
1 RIIO-3 Sector Specific Methodology Decision – Gas Distribution Annex, paragraphs 3.54-3.56