Compensation
As you may know, Ofgem has removed the cap on the maximum amount of compensation payable by power companies, which was previously £700.
Those who were without power for more than 48 hours will be entitled to £70, and then an additional £70 for each 12 hour period thereafter.
Lots of you completing the survey said you were not aware of your rights. You can find out more on that HERE from Ofgem.
Northern Powergrid
I had an update meeting with Northern Powergrid on Friday (10th December). They were in the process of preparing their systems to contact all those affected. Because they are not the direct suppliers of our power, the data they hold on us - their eventual customer - is sometimes patchy and incomplete. This is a factor I will be raising in the reviews (more on that below) and I fear may complicate and frustrate the administration of compensation.
However, they assured me for those customers for whom they hold data, they will calculate the level of compensation and send out a cheque. For those for whom they do not have enough data to write a cheque, they will write asking people to submit the required data. People will be able to do this via their website, by calling them or by returning the form they will provide.
I have been asked to stress they will NOT ask for your bank details, and anyone asking for your bank details in relation to Storm Arwen compensation should be reported to the police.
The below is from an email to me from Northern Powergrid:
"We understand the strain Storm Arwen has placed on our customers at a difficult time and how important it is that we make compensation payments as swiftly as possible.
"The amount of compensation each customer is entitled to is bespoke, depending on the length of time they were off compared with the length of time the regulations give us to restore supply.
"For a typical customer, if they were without power for more than 48 hours, the compensation payment will be £70 for the first 48 hours and £70 for every 12 hours beyond that. Although compensation under the regulations is capped at £700, we are voluntarily topping-up payment to those off supply for the longest, so you will be compensated as if the cap did not apply.
"We have now processed a large amount of the data that will allow us to pay compensation automatically where we already have all the information we need such as the bill payer’s details and duration of their power cut. We will calculate the amount of compensation due and proactively send them a cheque. This straightforward approach will ensure the majority of our customers will receive their payment without having to contact us.
"For customers where we do not hold all the information we need, we will send them a letter inviting them to provide the required details. They will be able to do this via our secure website, by calling us or by returning the form we will provide. These letters will start to be issued this week. We will let you know when we have written out to all the affected customers so that you may contact us if your constituents have not heard from us by then.
"All payments will be made via cheque, mitigating the risk of fraud. We will not request any bank details from you at any time.
"Our team is on track to start issuing cheques later this week and has made arrangements to increase our capacity to issue thousands of payments each day. That will enable to us to make these as many payments as possible before Christmas.
"We understand the strain Storm Arwen has placed on our customers at a difficult time and how important it is that we make compensation payments as swiftly as possible.
"The amount of compensation each customer is entitled to is bespoke, depending on the length of time they were off compared with the length of time the regulations give us to restore supply.
"For a typical customer, if they were without power for more than 48 hours, the compensation payment will be £70 for the first 48 hours and £70 for every 12 hours beyond that. Although compensation under the regulations is capped at £700, we are voluntarily topping-up payment to those off supply for the longest, so you will be compensated as if the cap did not apply.
"We have now processed a large amount of the data that will allow us to pay compensation automatically where we already have all the information we need such as the bill payer’s details and duration of their power cut. We will calculate the amount of compensation due and proactively send them a cheque. This straightforward approach will ensure the majority of our customers will receive their payment without having to contact us.
"For customers where we do not hold all the information we need, we will send them a letter inviting them to provide the required details. They will be able to do this via our secure website, by calling us or by returning the form we will provide. These letters will start to be issued this week. We will let you know when we have written out to all the affected customers so that you may contact us if your constituents have not heard from us by then.
"All payments will be made via cheque, mitigating the risk of fraud. We will not request any bank details from you at any time.
"Our team is on track to start issuing cheques later this week and has made arrangements to increase our capacity to issue thousands of payments each day. That will enable to us to make these as many payments as possible before Christmas."
Scottish Power
Scottish Power have made similar pledges to Northern Powergrid, although I have not yet received confirmation of their timings or systems for ensuring customers receive compensation. They have pledged to get this information to me asap. Once I have it, I will share it.