NORTHERN GAS NETWORKS OPERATIONS LIMITED
Company number: 03528783
Reporting period:
1 October 2025 to 31 March 2026
Report filed on:
27 April 2026
Approved by:
David Waite
Contracts and payments
Do any of this business's construction contracts with its suppliers include retention clauses? Yes
Payment statistics
Average time taken to pay invoices: 21 days
Total value paid:
- within 30 days: £162,412,202 (91%)
- in 31 to 60 days: £16,092,929 (9%)
- in 61 days or more: £860,530 (< 1%)
Invoices paid:
- within 30 days: 82%
- in 31 to 60 days: 17%
- in 61 days or more: 1%
Late and disputed:
- total value of payments due in the reporting period which have not been paid within the agreed period: £28,655,996
- payments due in the reporting period which have not been paid within the agreed period: 10%
- not made in the reporting period due to a dispute: 0%
Payment terms
Shortest standard payment periods
0 days
Longest standard payment period
61 days
Standard payment terms
30 days from the date of the invoice.
Were there any changes to the standard payment terms in the reporting period?
No
Were suppliers notified or consulted about these changes before they were made?
N/A
Maximum contractual payment period agreed
61 days
Northern Gas Networks (NGN) applies distinct payment terms of 7 days, to a group of suppliers that come under the name of Direct Service Providers (DSPs). NGN are contractually obliged to pay DSPs within 14 days, and to facilitate these payments, payment terms are set to 7 days.
Any other information about payment terms
N/A
Retention clauses
How does this business use retention clauses?
Retention clauses are used in specific circumstances:
Retentions are only held in the contracts of our suppliers who undertake construction or refurbishment of key property
Does this business only use retention clauses in construction contracts above a specific contract sum?
No
Does this business use a standard percentage rate in retention clauses?
Yes: 5%
Does this business apply retention clause practices that are no more onerous than those applied to it on the same project?
No
Releasing money under a retention clause
Process for releasing money this business has deducted or retained under a retention clause
Half of the retention is released once the quantity surveyor has confirmed that the works have been completed to the agreed standard.
The remaining 50% is released after 2 years if no defects have materialised.
Is the money released in stages?
Yes:
Half of the retention is released once the quantity surveyor has confirmed that the works have been completed to the agreed standard.
The remaining 50% is released after 2 years if no defects have materialised.
Amount retained from suppliers in the reporting period
Amount retained stated as a percentage of the money retained from this business by its clients
0%
Amount retained stated as a percentage of the total construction payments made by this business
5%
Dispute resolution process
Suppliers are contacted if there is a dispute with their invoice or PO, a mismatch of quantity or standards of goods/services received. This query could be handled by either the requisitioner or the accounts payable team or a combination of both. Ongoing disputes are escalated to the Accounts Payable Manager.
Other payment information
Has this business signed up to a code of conduct or standards on payment practices? If so, which?
For example, signatories to The Fair Payment Code must commit to paying 95% of their invoices within 60 days.
No, this business has not signed up to a code of conduct or standards on payment practices.
Does this business offer e-invoicing in relation to qualifying contracts?
This is where suppliers can electronically submit and track invoices. It's not just allowing suppliers to email them an invoice.
Yes
Does this business offer supply chain finance?
This is where a supplier who has submitted an invoice can be paid by a third-party finance provider earlier than the agreed payment date. The business would then pay the finance provider the invoiced sum.
No
Under its payment practices and policies, can this business deduct sums from payments under qualifying contracts as a charge for remaining on a supplier list?
No
During the reporting period, did the business deduct sums from payments as a charge for remaining on a supplier list?
No