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NORTHERN GAS NETWORKS OPERATIONS LIMITED

Company number: 03528783

Reporting period:
1 October 2019 to 31 March 2020

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This information is as reported by the business, and responses are in their own words.

This report was filed on 24 April 2020

and approved by David Waite

Payment statistics

Average time taken to pay invoices: 23 days

Invoices paid:

• within 30 days: 75%
• in 31 to 60 days: 20%
• in 61 days or more: 5%

Invoices due but not paid within agreed terms: 43 %

Payment terms

Shortest standard payment period

0 days

Longest standard payment period

61 days

Standard payment terms

30 days from the month end following the date of the invoice.

Were there any changes to the standard payment terms in the reporting period?

No

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 terms are set to 8 days.

Any other information about payment terms

In October 2019, the beginning of this period of this submission, NGN implemented a new ERP system. To facilitate the cut over of data into this new system, payments to a number of suppliers were accelerated in September 2019 to clear the ledger. There was then the cut over period for which the ERP systems was unavailable (first 2 weeks of October) which lead to a significant backlog and some delays in supplier payments. Post go live there have been new processes to adapt to for both suppliers and NGN, including suppliers signing up to SAP Ariba, which have meant that some invoices have been received late, or paid later than the payment terms. NGN continue to work closely with all suppliers to assist them during this period of change.

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. A report is issued twice a week to promote resolution of queries. If a 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 Prompt Payment Code must commit to paying 95% of their invoices within 60 days.

No

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