Ofgem has fined three energy companies a total of £4.6m for failing to help low-income households cut their bills.
Under the government’s community energy saving programme (Cesp), energy suppliers had to install energy efficiency measures, such as insulation, in households in low-income areas by the end of 2012.
The biggest fine, of £2.4m, was imposed on Scottish Power for failing to meet its targets on time, which meant several thousand deprived households missed out on energy saving measures during the cold winter of 2012-13, the energy regulator said. The £2.4m will be paid into the Scottish Power Energy People Trust to benefit consumers.
Sarah Harrison, Ofgem’s senior partner with responsibility for enforcement, said: “Scottish Power 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 was ordered to pay £1.75m after it missed the deadline and met only 91% of its requirements on time, which meant 2,100 households missed out on energy savings. The money will go to Foundations Independent Living Trust, Energy Action Scotland and the Citizen’s Advice Bureau for use in Wales.
French power generator GDF Suez was fined £450,000 after delivering just 38.6% of its targets on time, depriving 1,000 households from energy savings during a cold winter. The money will go to Age UK.
Power generator Drax was fined a record £28m recently after Ofgem found the company met only 37% of its obligations under Cesp. British Gas is to pay £11.1m to charity after being punished by Ofgem over its failure to meet its targets.
