National Grid fined £8 million for misreporting work completion

The UK National Grid was hit by a double whammy when it was fined £8 million by energy regulator Ofgem for overclaiming on a maintenance programme. and its staff voting for industrial action over pay.

The twin events were the latest in a series of embarrassing setbacks, that have seen the multinational utilities company investigated in the US and fined £15 million in Britain last year, for different abuses.

The £8 million fine has been imposed due to National Grid's failure to accurately report the completion of gas pipe maintenance demanded by the Health and Safety Executive. It claimed completion of work, when, in fact, it had not been done. It was also found that the company had claimed twice for work it had already completed.

The £15-million fine levied on the group last year was far higher – £41.6 million at the time it was first imposed in 2008, but was later scaled down, after the company battled two years for reduction. 

Even with this, the company has been hit with the two of the highest fines ever levied by Ofgem. The latest problems over maintenance work came to light with a whistleblower raising concerns inside the group, prompting senior management to take action.

Lord Mogg, Ofgem's chairman, said, "Ofgem's actions reinforce our strong message to all energy companies that misreporting cannot and will not be tolerated."