Energy firms fined £4.6m for not meeting environmental targets, says Ofgem

UK’s energy regulator Ofgem says it has fined Scottish Power, SSE and GDF Suez a total of £4.6 million for failing to meet environmental targets, which included commitments to help low-income households.

The three energy companies failed to help people living in low-income areas with wall/loft insulation and new boilers under the Government’s Community Energy Saving Programme.

Scottish Power is to pay £2.4 billion SSE £1.75 million, and GDF Suez £450,000.

Ofgem (Office of Gas and Electricity Markets) says the three companies’ failures meant thousands of low-income households had to pay higher heating bills because they “missed out on measures like insulation during the early months of 2013, where consumers experienced a particularly cold winter.”

The fines would have been steeper had the companies not taken measures to make up their shortfalls, Ofgem added. Scottish power fully made up its shortfall by April 2013, and actually over-delivered by 3%.

Ofgem’s senior partner, Sarah Harrison said, regarding Scottish Power:

“ScottishPower clearly missed its target by the required deadline disadvantaging many households. Today’s redress package sends a clear message to the energy industry that late delivery of obligations is unacceptable.”

SSE made up for its shortfall by over-delivering to about 346 households, which enabled a quicker resolution to the investigation, the regulator informed.

After missing the deadline, GDF SUEZ rapidly installed energy efficiency measures to a slightly greater volume than its shortfall by March 2013, Ofgem reported.

Video – Ofgem secures £4.6m in fines from 3 energy companies