Ofgem said that, following an investigation, it found that National Grid has entered into long-term exclusive contracts for the provision of domestic gas meters with energy suppliers that it believes lock suppliers into the company for a significant share of their gas meter requirements, thereby restricting the development of competition.

In a press release, Ofgem said: The Gas and Electricity Markets Authority believes that National Grid’s conduct amounts to an abuse of dominance, which infringes competition law.

Ofgem has the power to investigate and take enforcement action in relation to suspected infringements of UK and European Commission competition law.

Ofgem said that it has given National Grid eight weeks to make written representations on the statement, with the subsequent opportunity of making oral representations. Ofgem said that these representations will then be taken into account before a final decision is made.