Quantcast
Menu
Save, make, understand money

Household Bills

Ofgem ups compensation for power cuts

Lucinda Beeman
Written By:
Lucinda Beeman
Posted:
Updated:
24/07/2014

The amount of compensation available to consumers who experience long power cuts in extreme weather will greatly increase, energy regulator Ofgem has said.

As of April 2015 the minimum financial payment for consumers without power for at least 24 hours during a “severe weather event” like the storms seen last Christmas will more than double from £27 to £70. In addition the payment cap will increase from £216 to £700.

The regulator has also secured an additional £3.3m from SSE and UKPN, the energy companies whose customers were left without power as strong winter storms raged over the holiday period. The companies have already paid £4.7m to consumers.

Maxine Frerk, Ofgem’s senior partner for distribution, said: “A power cut at Christmas time is the last thing anyone needs. While we recognise the hard work of the companies and their staff who were out working to reconnect companies during the severe weather, the companies could have done more to plan for the weather and keep customers informed.

“Network companies need to learn the lessons of last winter. A repeat performance will trigger further action from Ofgem.”

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: “This won’t make up for the blackout Christmas suffered by so many last year, but Ofgem’s announcement means that in future consumers should get reconnected faster and be kept better informed if they’re plunged into the dark.”


Share: