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A National Grid PLC electricity distribution business will pay just under £15 million to a UK watchdog after failing to properly advise some of its most at-risk customers.
Western Power Distribution, focused on the Midlands and south west regions of England, as well Wales, will make a voluntary redress payment of £14.9 million to fund managed by Ofgem.
WPD failed to ‘provide information, advice and services to customers on its priority services register’, the regulator said on Wednesday.
The priority services register includes vulnerable energy customers.
‘Network companies are required to provide additional services to households in vulnerable circumstances who are on their priority services registers. There are approximately six million customers registered for priority assistance across Great Britain,’ Ofgem explained.
‘These additional services include providing prompt information and advice during unplanned power cuts to these customers, for whom a loss of electricity supply may be particularly difficult. This helps these customers take steps to keep themselves safe and access any additional assistance from network companies. Examples of additional assistance could include, in appropriate circumstances, mobile power generators, hot meals and drinks, alternative accommodation and on-site welfare units.’
Ofgem kicked off a probe into WPD's compliance of priority services register obligations in 2020. It found WPD, which has around 1.7 million vulnerable customers, failed to ‘promptly’ inform them of power cuts or when power would be restored.
Ofgem added: ‘This made it harder for these PSR customers to plan ahead to ensure their needs were met and access the available assistance. This issue occurred over a period of five years.’
WPD has agreed to make the one-off £14.9 million redress payment. It will pay £3.7 million for each of the four licences it operates.
National Grid completed its £7.8 billion acquisition of WPD in June of last year.
National Grid shares were 0.8% lower at 1,185.50 pence each in London on Wednesday morning.
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