NORTHERN GAS NETWORKS OPERATIONS LIMITED
Company number: 03528783
Reporting period:
1 April 2019 to 30 September 2019
Report filed on:
24 October 2019
Approved by:
David Waite
Payment statistics
Average time taken to pay invoices: 23 days
Invoices paid:
- within 30 days: 73%
- in 31 to 60 days: 23%
- in 61 days or more: 4%
Late and disputed:
- payments due in the reporting period which have not been paid within the agreed period: 16%
Payment terms
Shortest standard payment periods
0 days
Longest standard payment period
61 days
Standard payment terms
30 days to month end following on 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 8 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 term are set at 8 days.
Any other information about payment terms
During the period of this submission, NGN implemented a new ERP system at the end of September 2019. To facilitate the cut-over of data into this new system payments to a number of suppliers were accelerated.
Dispute resolution process
Suppliers are contacted if there is a dispute with their invoice or PO, a mismatch of quantity or standard of goods/services received. This query would be handled by either the requisitioner or the accounts payable team or a combination of both. A report is issued twice a week to promote resolution of the query. If the dispute is ongoing it is escalated to a senior member of the finance team.
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.
No
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