Power cut compensation

A report by the Scottish Affairs Committee has said that compensation levels for power cut need to be set at a more realistic level.

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Power cut compensation ‘inadequate’

A report into compensation levels for power cuts by the Scottish Affairs Committee says compensation needs to be set at more realistic level. It says that it is necessary to deal with the effect on consumers and encourage high quality performance from energy companies.

The committee noted that energy companies did pay compensation to some consumers affected by storms in January but say this should be a right and not at the discretion of the company.

Among other recommendations the committee says:

  • Ofgem should consider increasing compensation levels so that they more realistically reflect the effect on consumers
  • Ofgem, power companies and local authorities should work together to ensure the maximum flow of information to customers and to enable the identification of vulnerable individuals in an emergency situation
  • Ofgem should report to the Committee on how well transmission and distribution network operators are working together to improve electricity supply to the communities which suffered the most during recent storms.
  • Contingency plans should be established and practiced regularly
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