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 had committed “a serious breach of competition law”.
It said National Grid’s actions had prevented gas suppliers from contracting with other firms for cheaper metering deals.
“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.
National Grid’s turnover from its gas meter business is around £260m a year.
The company is also responsible for the UK’s long distance electricity transmission network.National Grid, which operates the UK’s main gas pipeline system, has said it will appeal against the decision.