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| Ofgem fines National Grid £41.6m | Ofgem fines National Grid £41.6m |
| (10 minutes later) | |
| National Grid has been fined £41.6m by energy regulator Ofgem for restricting the development of competition in the domestic gas meter market. | National Grid has been fined £41.6m by energy regulator Ofgem for restricting the development of competition in the domestic gas meter market. |
| Ofgem said the company, which operates the UK's main gas pipeline system, had committed "a serious breach of competition law". | Ofgem said the company, which operates the UK's main gas pipeline system, had committed "a serious breach of competition law". |
| It said Ofgem's actions had prevented gas suppliers from contracting with other firms for cheaper metering deals. | It said Ofgem's actions had prevented gas suppliers from contracting with other firms for cheaper metering deals. |
| National Grid has said it will appeal the decision. | National Grid has said it will appeal the decision. |
| The company is also responsible for the UK's long distance electricity transmission network. | |
| 'Voluntary agreements' | 'Voluntary agreements' |
| Ofgem's decision relates to a number of metering contracts National Grid entered into with gas suppliers in 2004. | Ofgem's decision relates to a number of metering contracts National Grid entered into with gas suppliers in 2004. |
| National Grid has abused its dominance in the domestic gas metering market, restricting competition and harming consumers Ofgem chairman Sir John Mogg | National Grid has abused its dominance in the domestic gas metering market, restricting competition and harming consumers Ofgem chairman Sir John Mogg |
| "These contracts were negotiated over a two year period, were voluntarily entered into by gas suppliers and delivered immediate and substantial reductions in charges for meter services, saving customers around £120m over the four years of their operation," said National Grid. | "These contracts were negotiated over a two year period, were voluntarily entered into by gas suppliers and delivered immediate and substantial reductions in charges for meter services, saving customers around £120m over the four years of their operation," said National Grid. |
| "Ofgem was consulted throughout this process of contract development and negotiation and has acknowledged that National Grid had no intention to breach the Competition Act." | "Ofgem was consulted throughout this process of contract development and negotiation and has acknowledged that National Grid had no intention to breach the Competition Act." |
| Ofgem counters that under the terms of National Grid's contracts, suppliers wrongly faced penalties if they replaced over a certain number of gas meters. | Ofgem counters that under the terms of National Grid's contracts, suppliers wrongly faced penalties if they replaced over a certain number of gas meters. |
| "National Grid has abused its dominance in the domestic gas metering market, restricting competition and harming consumers," said Ofgem chairman Sir John Mogg. | "National Grid has abused its dominance in the domestic gas metering market, restricting competition and harming consumers," said Ofgem chairman Sir John Mogg. |
| The UK's gas distribution system was formerly run by Transco after the privatisation of British Gas. | The UK's gas distribution system was formerly run by Transco after the privatisation of British Gas. |
| In 2002 its parent company, Lattice Group, merged with National Grid. | In 2002 its parent company, Lattice Group, merged with National Grid. |
| The new company was first called National Grid Transco, before being shortened to National Grid in 2005. | The new company was first called National Grid Transco, before being shortened to National Grid in 2005. |