British Gas will have to hand the energy regulator more than £4m in fines and repayments after breaking the rules on getting energy from green sources.
The company fell foul of the regulations that stipulate energy suppliers must get around 10pc of their power from renewables, such as wind farms.
They have to present documents called Renewable Obligation Certificates (ROCs) to prove this. Any shortfall incurs a financial penalty paid into a central pool
British Gas admitted to Ofgem that it had under-reported how much electricity it supplies overall, meaning it should have got a greater amount of its total from green sources.
Over seven years, the company, which is owned by FTSE 100 giant Centrica, under-reported its supply of electricity by 0.62pc.
It will pay a £1m fine and make repayments by surrendering ROCs worth £2.8m plus interest.
The penalty was lower than it would otherwise have been because British Gas brought the matter to Ofgem's attention and co-operated fully with the investigation undertaken by the regulator.
Opus Energy, a major supplier of power to John Lewis and Stagecoach, is also under investigation by Ofgem over concerns about reporting of its obligations under the ROC scheme.
Separately, National Grid was fined £8m in January for giving inaccurate information about the state of its gas network after a whistleblower exposed problems at the utility giant. Ofgem was called in after the networks giant realised it had misled the regulator over when some repairs were completed.
David Pimm, finance director of the energy regulator, said: "Ofgem's decision today, and our decision to impose an £8m penalty on National Grid Gas earlier this year sends a clear message to all energy companies that accurate reporting is essential across the energy sector.
"Energy suppliers who are presently submitting information to Ofgem for the 2010-11 Renewables Obligation period should also understand that the level of the penalty reflects both the importance of compliance and the significant co-operation of British Gas, including action to address the harm caused.
"Without this, the penalty would have been much higher."
Ofgem administers the ROC scheme on behalf of the government.
Source: www.telegraph.co.uk
The company fell foul of the regulations that stipulate energy suppliers must get around 10pc of their power from renewables, such as wind farms.
They have to present documents called Renewable Obligation Certificates (ROCs) to prove this. Any shortfall incurs a financial penalty paid into a central pool
British Gas admitted to Ofgem that it had under-reported how much electricity it supplies overall, meaning it should have got a greater amount of its total from green sources.
Over seven years, the company, which is owned by FTSE 100 giant Centrica, under-reported its supply of electricity by 0.62pc.
It will pay a £1m fine and make repayments by surrendering ROCs worth £2.8m plus interest.
The penalty was lower than it would otherwise have been because British Gas brought the matter to Ofgem's attention and co-operated fully with the investigation undertaken by the regulator.
Opus Energy, a major supplier of power to John Lewis and Stagecoach, is also under investigation by Ofgem over concerns about reporting of its obligations under the ROC scheme.
Separately, National Grid was fined £8m in January for giving inaccurate information about the state of its gas network after a whistleblower exposed problems at the utility giant. Ofgem was called in after the networks giant realised it had misled the regulator over when some repairs were completed.
David Pimm, finance director of the energy regulator, said: "Ofgem's decision today, and our decision to impose an £8m penalty on National Grid Gas earlier this year sends a clear message to all energy companies that accurate reporting is essential across the energy sector.
"Energy suppliers who are presently submitting information to Ofgem for the 2010-11 Renewables Obligation period should also understand that the level of the penalty reflects both the importance of compliance and the significant co-operation of British Gas, including action to address the harm caused.
"Without this, the penalty would have been much higher."
Ofgem administers the ROC scheme on behalf of the government.
Source: www.telegraph.co.uk
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