Investigations into Cadent Gas Limited, Scotland Gas Networks Plc and Southern Gas Networks Plc, and their compliance with their obligations under their gas transporter licence
Summary
Ofgem opens investigations into Cadent Gas Limited, Scotland Gas Networks Plc and Southern Gas Networks Plc compliance with obligations under their Gas Transporter Licences.
Why it matters
Three of the four major gas distribution networks under simultaneous investigation. The scope and detail of the licence obligations under investigation will determine whether this is technical compliance or structural concerns about gas-distribution conduct. Companion to the broader pattern of post-RIIO-GD2 performance scrutiny.
Areas affected
Memo
Investigations into Cadent Gas Limited, Scotland Gas Networks Plc and Southern Gas Networks Plc, and their compliance with their obligations under their gas transporter licence | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Investigations into Cadent Gas Limited, Scotland Gas Networks Plc and Southern Gas Networks Plc, and their compliance with their obligations under their gas transporter licence Publication type: Enforcement case Publication date: 30 May 2025 Status: Closed Topic: Gas distribution, Compliance and enforcement Subtopic: Enforcement Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn In August 2024, Ofgem opened investigations into Cadent Gas Limited (Cadent), Scotland Gas Networks Plc (SGN Scotland) and Southern Gas Networks Plc’s (SGN Southern) alleged non-compliance with their obligations contained within Standard Special Condition D10 2(h) by failing to attend at least 97% of gas escapes in the prescribed timescales for the reporting period 2022 to 2023. The investigation covered Cadent’s North London and Northwest regions, and SGN’s Scotland and Southern regions as the gas distribution network (GDN) operators. In accordance with our Enforcement Guidelines, Ofgem has decided to close these investigations, by way of alternative action. The decision to close the investigations was made as a consequence of Cadent and SGN’s agreement to admit that they breached the obligations contained within SSC D10 2(h) by failing to attend gas emergencies in the prescribed timescales. In addition, this obligation is currently subject to consultation as part of the wider RIIO-3 consultation process, with proposed changes including that from 1 April 2026, Ofgem will require more detailed performance and workload volumes to be reported in GDNs' annual RRPs for response times to controlled and uncontrolled escapes. We are also proposing to publish monthly and annual data in our RIIO Annual Report to provide consumers with greater visibility of GDN performance over the year. We will also require the GDNs to proactively provide us with a detailed explanation if their performance falls below 97% in a month. 1 Ofgem’s decision to close these investigations is subject to the following payments being made to Ofgem’s Voluntary Redress Fund: Cadent - £1.5 million SGN Scotland - £700,000 SGN Southern - £5.8 million This agreement, coupled with the actions taken by Cadent and SGN to improve their ways of working in achieving the obligations under SSC D10 2(h), now concludes this matter. 1 RIIO-3 Sector Specific Methodology Decision – Gas Distribution Annex , paragraphs 3.54-3.56 Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close