Gas firm Transco faces £1m fine

Transco said service had improved

The energy regulator Ofgem is to fine Transco £1m because of the gas network's poor service in connecting customers to the network.

The "widespread problems" in the firm's connection business had come to light from numerous complaints, Ofgem said.

Transco was criticised for not doing quotations on time and not turning up to do connection work.

Ofgem said this had hit gas suppliers acting for homeowners, building contractors and competing gas firms.

Transco has until 30 April to challenge the penalty and said it is considering its position.

A spokesman for the firm said it was "very disappointed" with the findings "in respect of our gas connections activities".

"We believe that to find us in breach is both inappropriate and disproportionate," they continued.

"We accept there have been problems with our connections activity but, as Ofgem acknowledge, improvements have been delivered by the actions we have taken."

£2.6m compensation

Sir John Mogg, chairman of Ofgem, said: "What customers want is a good service, not compensation.

"This proposed penalty is a clear signal to Transco that its connections business must deliver an efficient service."

He said there were signs of improvement but Ofgem would not hesitate to take further action if necessary.

Since 1999, Transco had been subject to an enforcement order which set performance targets and put in place compensation arrangements for certain customers.

Between March and December 2003, Transco paid £2.6m compensation.

Ofgem said there had been no breach of safety regulations.