Energy regulator Ofgem has handed out a £1m fine to British Gas for misreporting the amount of renewable electricity it said it had supplied over a seven year period.
Over the seven year period, British Gas underestimated the amount of electricity supplied by an average of 0.62% per year. The energy provider allegedly reported the wrong amount because it had mis-interpreted Ofgem’s reporting requirements.
Under its ‘renewables obligation’ Ofgem requires energy suppliers to provide evidence of the amount of electricity which was supplied from renewable sources, relative to the electricity they supplied in total.
British Gas brought the error to Ofgem’s attention and co-operated fully throughout the investigation. The amount of the financial penalty was reduced because of British Gas’ co-operation and action over the matter.
David Pimm, Group Finance Director of Ofgem, said: “Ofgem’s decision today sends a clear message to all energy companies that accurate reporting is essential across the energy sector.”
