The Northern Ireland utility regulator has said it intends to fine Gas Networks Ireland (UK) £500,000 for improper allocation of costs between construction projects.

The regulator said an investigation took place following a whistleblower complaint received from an ex-employee of GNIUK.

The complainant alleged that an overrun of approximately €576,000 on a capital project in the Republic of Ireland was concealed by allocating certain costs of that capital project to the North West Pipeline in Northern Ireland. The allegation related to the construction of the Barnakyle to Coonagh pipe-line in the Republic of Ireland.

At around the same time, GNIUK’s ultimate parent company Ervia (previously known as Bord Gáis Eireann) also received the same whistleblower complaint and initiated its own investigation into the matter. That investigation substantiated the allegation and found that there had been an improper allocation of costs.

The utility regulator said it had taken into account GNIUK’s offer to settle the investigation and make consumer redress payments. However, the regulator said it doesn’t consider in the circumstances of the case that a consumer redress payment in lieu of a financial penalty is “adequate or appropriate”.

As a result, it said it intends to impose a financial penalty of £500,000 on the company.