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Ofgem proposes higher compensation payments for power cuts

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In a proposal published this week, Ofgem have advised they want to force power companies to double their compensation payments to customers affected by power cuts in severe weather.

The distribution network operators (DNO’s) will be required to pay out £70 per customer if they fail to meet the levels of service required. Automatic payments are to be made wherever possible and the cap on compensation payments will be lifted from £216 to £700.

Ofgem has also increased the compensation payments for customers who are affected during normal weather conditions.

Over Christmas last year, power was cut off to over 16,000 customers for more than 48 hours, after severe weather battered Britain.

Hannah Nixon, senior partner for distribution, said: “Many parts of Britain have seen some extreme weather conditions over the last few months and Ofgem has been proactively looking at ways to help consumers who face disruption to their energy supply in these situations.

“We are committed to ensuring that consumers are provided with a reliable electricity service. During the 2013 Christmas storms, 95% of customers who faced power cuts were reconnected within 24 hours, but we remain concerned about the 5% whose supplies were off for an extended period. Increasing the financial payments would send a strong message to the network companies that they need to do all that they can to reconnect all customers as fast as possible.”

The decision will be made and published in July.




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