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Networks lift compensation cap for storm-hit customers

The energy regulator has officially launched a review into networks’ response to Storm Arwen as well as announcing an increase in the compensation affected customers can claim.

The review will focus on the role of the networks in maintaining the resilience of the system and their emergency response, including their communications with customers. Ofgem said this could ultimately lead to enforcement action.

They have come under fire from MPs this week after some customers complained they were left waiting as long as two hours to be connected when the storm hit at the weekend.

Almost one million homes have been affected by the disruption. As of Friday morning, around 10,500 homes were still without power, down from 15,000 the night before.

Meanwhile, Ofgem has reached agreement with the networks to remove the £700 limit on compensation. Customers are able to claim £70 for the first 48 hours off power and then the same amount for every further 12 hours until they are re-connected.

Thousands of engineers remain in the field working to re-connect the remaining customers, although some have been told that this may not happen until next week.

Networks are working with the British Red Cross and local resilience forums to provide extra help and support. Welfare centres have been set up in some of the worst-hit areas, providing hot food and respite. Tens of thousands of hot meals have been distributed across the impacted areas and dedicated teams are contacting vulnerable customers to offer support.

Ofgem chief executive Jonathan Brearley said: “We accept the network companies have been working in challenging conditions, but until every home in Britain has power restored, that relentless effort must continue. We are launching a review into how the storm has been handled. We have strict rules on how network companies need to operate in these circumstances, and we will take action if needed.

“The absolute priority remains getting people back on power as quickly as possible, but for those who have not had power because of Storm Arwen, there are ways for customers to claim compensation by contacting their network company. After discussions between the regulator and the industry, network companies have agreed to remove the £700 cap on compensation to allow affected customers to claim for the full period they have been without power.

“I’ve launched an urgent review to see if there are things that the industry could learn from this response in order to improve our support to consumers in the future.”

Ross Easton, director at the Energy Networks Association, said: “The energy networks are continuing to work flat out to reconnect the remaining customers who are without power, and we welcome and fully support this review from Ofgem. It’s important that we learn from Storm Arwen, particularly as the intensity and frequency of storms increases with climate change.”