Power Failures: Compensation
The question
To ask the Secretary of State for Energy Security and Net Zero, what steps his Department is taking to help ensure that compensation arrangements for prolonged power outages are (a) fair, (b) transparent and (c) reflect the impact on affected households in Surrey Heath constituency.
Answered by Michael Shanks
All customers are entitled to compensation if distribution companies fail to meet Ofgem’s Quality-of-Service Guaranteed Standards. Ofgem clearly outlines the eligibility criteria for compensation on its website and will take action if companies do not meet their obligations in regard to delivering compensation.
Ofgem regularly review and update 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.
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