Power Failures: Compensation
The question
To ask the Secretary of State for Energy Security and Net Zero, whether he has made an assessment of the potential merits of revising the compensation scheme for electricity consumers to include compensation for the inconvenience caused by power cuts of shorter duration where these occur repeatedly.
Answered by Michael Shanks
The Government expects energy companies to deliver the best support to customers. Ofgem monitors and enforces the Guaranteed Standards of Performance. Ofgem also regularly reviews and updates their compensation arrangements. The most recent changes were made following the Storm Arwen Review which came into effect on 1 September 2023 and enable higher levels of compensation at more regular intervals. Ofgem regulates Distribution Network Operators through a price control process, which includes incentives to reduce the frequency and duration of power interruptions. For the next price control period (2028–2033), Ofgem is reviewing whether amendments are required to minimise repeated or prolonged interruptions.
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