Shares digital

Energy regulator Ofgem this week slapped a £41.6 million fine on electricity and gas transmission firm National Grid (NG.) for what it termed a ‘serious breach of competition law’.

National Grid was found guilty of abusing its position in domestic gas metering. After this market had been opened to competition, the FTSE 100 firm secured long-term contracts for the supply and maintenance of gas meters with five of the UK’s six major energy suppliers. According to Ofgem, National Grid included hefty penalty charges in the deals which ‘severely restricted’ the rates at which energy suppliers could replace its meters with more advanced ones from rival firms.

Management at National Grid expressed its disappointment at the findings and announced plans to lodge an appeal.

The shares in National Grid shrugged off the news and held firm at 762.5p.

Shares says: The fine doesn’t change the healthy growth prospects for National Grid.

by: Carlo Svaluto