British Gas charged £11.1m for missing energy efficiency targets
British Gas has been hit with an £11.1m fine for failing to meet binding targets for delivering domestic energy-efficiency upgrades by an agreed deadline.
The big six firm was ordered by Ofgem to pay the fine to fuel poverty charities after an investigation found it failed to meet its environmental obligations under the Community Energy Savings Programme (CESP) and Carbon Emissions Reduction Target (CERT) by 2012.
Ofgem states that British Gas' senior management 'failed to take appropriate action to ensure it delivered energy efficiency measures on time.'
CESP required energy suppliers and generators to deliver energy saving measures to households by the end of December 2012. British Gas only delivered 62.4% of its obligations on time. CERT required gas and electricity suppliers to achieve targets for reducing carbon emissions within domestic properties. British Gas achieved 99% of its target before the deadline.
Although British Gas did installed energy efficiency measures equivalent to the volume of its CERT and CESP shortfalls by February and August 2013 respectively, households weren't able to benefit from energy efficient measures up until then.
Ofgem senior partner Sarah Harrison, who is responsible for enforcement, said: "British Gas' failure to deliver two environmental obligations on time is unacceptable. Thousands of households had to wait for energy efficiency measures, like insulation, to be installed during the winter.
"The payment reflects British Gas' failure to meet its obligations on time but also recognises its commitment to put things right."
The move follows confirmation last week that Drax power station had to pay £28m over similar breaches of energy-efficiency rules.