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London's biggest electricity company EDF has been hit with a £2 million fine for “poor service”.
The penalty, imposed by industry regulator Ofgem today, equals the second biggest-ever penalty for an energy company since privatisation.
Ofgem's investigation found that EDF, which is obliged to provide quotes for connecting new buildings and new developments such as housing estates within 90 days, missed the deadline more than 100 times between 2006 andlast year.
French owned EDF Energy Networks, which has a monopoly over power networks in London, East Anglia and the South-East, was first warned about the failings in 2006.
Sarah Harrison, Ofgem's managing director corporate affairs, said the size of the fine sent a message to other energy companies.
She said: ”Customers should not have to accept poor service in any part of the energy market. All energy companies should be in no doubt that if they are failing to offer good customer service Ofgem will take tough regulatory action.
“We recognise that EDF Energy has now taken steps to improve its connections service, but they should have taken this action some time ago. EDF has already paid around £450,000 in compensation to affected customers, and this is reflected in the level of Ofgem's penalty.”
In a statement EDF said it “greatly regrets” the delays.
“EDF Energy notified Ofgem of this issue at the time and the company provided information to the regulator on a total of 108 cases where it had taken more than the three month timeframe outlined in our licence.”
It said it had made goodwill payments to all 108 customers.
The fine completes a miserable week for EDF, part of the giant French group Electricité de France. It struggled for several days to restore power to thousands of homes in south London after vandals damaged electricity cables.
Reader views (9)
Nothing will change with all the Utility Companies until they are taken back, and nationalized again.
Vote for a Government that will look after their own people first; and reject those Governments that look after big business, the financial sector, and Banks.
If its profits; and not vital and essential services to the people, then the people will always suffer, and pay the true costs of big business and big profits etc.
You get what you vote for; if governments like the Tories and New Labour can sell off cheap, or even give away our assets; then just as surely; you can get a Government that will take the lot back again, and return all the thefts to their rightful owners; the British People and the British Nation.
If you do not: then expect more racketeering from those that bought out cheaply, all your National assets.
Never say you cannot; because you can if you really want to; it just takes the will and the determination to fight back against all those that are robbing you blind.
You all have been betrayed by the Big Two Parties for the last 30 years; The British have fought two world wars for freedom and to defend itself against all; yet you have allowed these two parties to sell off for peanuts, what many thousands died fighting for; if you want to continue being sold out; then carry on voting for the traitors that make up the Big Two Parties, and they will carry on betraying you all; and you will deserve it; there is no fool like an old fool.
- Mickinlondon, london., 24/07/2009 12:58
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EDF said the fire that damaged cables in the Dartford area earlier this week blacking out many thousands of homes homes for several days here in Welling and surrounding suburbs was caused by vandals. But they would say that wouldn't they. Of course, it was nothing to do with inadequate maintenance and maximising profits. Interestingly, the lights stayed on in their Bexleyheath offices all the while.
- Richard Kennard, Welling, 24/07/2009 12:52
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EDF just go from bad to worse. We switched away from this poorly managed company in 2007 yet still receive bills and threatening letters for electricity that is being supplied for a more reliable utility whom is being paid by direct debit each month. It is impossible to get any sense out of EDF - they just want to extract as much money from customers as possible without providing a decent service.
- Simon Ellis, London E8, 24/07/2009 11:29
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It's a bit rich really a Government Dept fining a privately run company for "poor customer service" as it's the customer that will pay the fine.
If Government Depts were fined for poor service, we would have been bankrupt yaers ago, mind you it's one way of collecting another stealth tax for them I suppose.
- P Staker, London, 24/07/2009 11:29
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It is a shame the customer cannot fine them too !
- Tt, london, 24/07/2009 10:57
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A £2 million fine payable by EDF customers, as this cost will just be passed on to us.
What should have happened, is that the directors personally got fined.
Thanks for nothing Ofgem, you useless organisation.
- Fred, London, 24/07/2009 10:41
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So, in 2 days, 2 utility comapnies are fined for fleecing customers, Thames Water and EDF, what on earth do they have in common I wonder? Why, they're foreign owned, there's a shocker!
- Bob, Cheam, 24/07/2009 10:17
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Given circumstances (ie. act as vandalism) understand that EDFs liability ends, and that they are reviewing "goodwill gesture" payments... with £2m fine levvied guess those payments will now be alot less! 
As for "£450,000 in compensation it has already paid out to affected customers" if this refers to latest debacle -am curious as to who this has actually been paid to as its not me, my family, colleagues or any of my friends who have been affected.
Simple customer service such as keeping customers upto date with what was happening by text (to those that had registered to receive updates) simply didn't happen - this would have atleast gone to apease customers and perhaps make them feel that EDF actually was doing something more than just talking the talk about customer service.....
Anyway am sure the £2m fine will only make a very small dint in their profits, unlike the businesses that have suffered in North Kent due to the power failure, lets hope the small companies manage to stay trading now they have the power to do so!
- Sara Ancill, Dartford, Kent, 24/07/2009 09:28
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Now that the regulator has imposed a fine on EDF i have no chance of receiving compensation for the shoddy service i got. Unless of course OFGEM sends me a little of what they got.
- Mr S.Port, London, 24/07/2009 09:18
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