Power distributor National Grid was today fined £41.6m sterling for restricting competition in the UK's gas metering market.
UK energy regulator Ofgem said the company, which owns 99% of the UK's gas meters, had 'severely restricted' rival suppliers from replacing its equipment with cheaper or more advanced devices. The fine is the biggest ever imposed by the regulator.
'National Grid has abused its dominance in the domestic gas metering market, restricting competition and harming consumers,' Ofgem chairman Sir John Mogg said.
National Grid said there was no evidence customers or competition had been harmed and added that it would be lodging an appeal.
Ofgem said National Grid had struck deals with five of the UK's six major energy suppliers to supply and maintain meters. The contracts include financial penalties that apply if suppliers replace more than the 'small' number of meters allowed under the contract, the regulator said.
'By restricting competition, National Grid has deprived gas suppliers and customers of access to lower prices and improved service,' Ofgem said.
The regulator said that National Grid had also curbed innovation in the supply and maintenance of household metering.
