Ofgem reveals increase in compensation for victims of power cuts

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Energy industry regulation Ofgem has revealed that customers left without power during storms or other severe weather conditions will receive increased compensation from next April (2015).

The current government rules dictate that anyone left without power for at least 24 hours during a severe storm must be paid a minimum of £27 compensation by their energy supplier for each 12-hour period they're left without access. From next spring, this will increase by £43 to £70 for every 12 hours.

Ofgem has also stated that the cap - the maximum a customer can receive - on compensation will also rise - from £216 to £700. This too will be implemented from April onwards.

The changes come after a consultation in the aftermath of last winter's severe storms (2013). Almost a million homes in the UK were left without power in the adverse conditions.

SSE and UKPN (UK Power Networks) have also been fined £3.3 million by Ofgem, on top of the £4.7 million they've already paid in compensation to customers, for failing to respond quickly enough to last December's power cuts.

Maxine Frerk, senior partner for distribution at Ofgem, stated: "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 customers during the severe weather, the companies could have done more to plan for the weather and keep customers informed," she added.

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