SSE and UKPN pay out £8m following Christmas storms

SSE and UK Power Networks (UKPN) will pay out a total of £8 million following the regulator’s investigation into their performance during the storms last Christmas in the south of England.

Ofgem has secured an additional £3.3 million from the companies, which will be paid to charities such as the Red Cross, on top of the £4.7 million that has already been paid out to consumers under the guaranteed standards and goodwill payments.

Ofgem stated that while both SSE and UKPN’s electricity distribution areas were “particularly badly hit” by the storms over Christmas 2013 “they could have done more” to reconnect consumers and better inform them on what was happening.

The severe winter storm left 16,000 customers without power for more than 48 hours and the regulator has put the industry on notice that any repeat of last year’s performance issues will trigger further action.

Stuart Hogarth, director of distribution at Scottish and Southern Energy Power Distribution said: “This winter was one of the worst in living memory. We experienced eight major storm events with the rain, wind and flooding particularly badly at Christmas.

“I’m extremely proud of the dedication and professionalism displayed by our engineers, linesmen, tree cutters and call takers this winter, there are a number of areas where we can improve.”

Basil Scarsella, chief executive of UKPN, said: “Our £1 million donation does not only help customers affected by the extreme weather but it will also help all our customers in a variety of ways as we strengthen our partnerships with charities.

“Customer service is our priority but there is always room for improvement.”

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 customers during the severe weather, the companies could have done more to plan for the weather and keep customers informed.”

Ofgem has also confirmed improvements to the guaranteed standards payments made to customer who face long power cuts.

The minimum payment for customers who faced at least 24 hours without power has been more than doubled from £27 to £70, while the maximum cap for payments made has been increased from £216 to £700.

Frerk added: “Network companies need to learn the lessons of last winter as a repeat performance will trigger further action from Ofgem.”