Ofgem increases storm compensation

adminBusiness Electricity, Utilities Market Regulation

The amounts to be paid to end users following the disruption during the Christmas storm has been increased by £3.3 million, now totalling £8 million.

Ofgem Logo

Ofgem has doubled minimum payments for those who lose power for more than 24 hours

The energy regulator Ofgem has secured an additional £3.3 million for consumers after an investigation into how SSE Energy Networks and UK Power Networks handled the disruption caused by last winter’s storms.

In addition, Ofgem will more than double the minimum payments for people affected by future incidents of a similar nature, increasing them from £27 to £70.

The payments apply to those who were without power for more than 24 hours. Ofgem has said that “lessons must be learned” from the Winter 2013 storms. Both SSE and UKPN agree that their performance in getting customer reconnected was not good enough.

Ofgem’s press release says that SSE and UKPN “could have done more to get customers reconnected faster and to keep them better updated on what was happening”.

The extra £3.3 million is to be donated to organisations like the British Red Cross, who routinely help people in times of need, such as power cuts and severe weather.