Storm victims get £1.8m payout

Storm damage to electricity supply affected thousands

Electricity customers whose supplies were severely affected by the storms which ravaged parts of the UK last October, could receive up to £325 each in compensation.

Energy regulator Ofgem said just over 20,000 electricity customers would share a total package worth £1.8m.

Payouts will range between £25 and £325, depending on how long the customer was without supply.

Last October's storms left about two million people without power, but only those people who complained - and followed the correct procedure - will get compensation, to the dismay of consumer bodies.

Complain reward

Ofgem said it accepted the weather was severe and power cuts were inevitable, but many of the customers making compensation claims received levels of service which "fell below reasonable standards".

The judgement by Ofgem will be a welcome relief for successful claimants, who have had a protracted battle to get compensation.

But it could be disappointing for many others.

Allan Asher of Energywatch, the gas and consumer council, said failure to compensate everyone affected - and not just those who complained - was unfair.

"Just because 99% of people did not lodge a formal complaint does not mean that they should miss out on compensation," he said.

"When companies are found wanting, they should be forced to pay compensation to all customers affected. It is unreasonable to expect customers to have the knowledge, time or expertise to chase their own compensation."

Lengthy battle

Some electricity companies had initially refused to pay out, claiming a legal exemption for exceptional circumstances.

While these exemptions can be challenged by consumers, initially at Energywatch, and finally by a determination from Ofgem - it is a lengthy legal process.

We are also very pleased that all the companies have agreed to pay additional compensation to those customers who had made a valid claim but did not seek a determination from us David Gray, Ofgem managing director

Compensation worth £260,000 will be given to 2,700 customers whose complaints were subject to these determinations.

In an agreement between the companies and the regulator, welcomed by Ofgem, companies have agreed to make compensation payouts totalling £1.6m to about 18,000 customers.

These people complained to companies within one month of their power being restored but did not seek a determination by Ofgem.

Ofgem Managing Director, David Gray, said: "We have been working hard to settle these claims since we started receiving them from the consumer body, Energywatch between January and March.

"Most customers who made claims will now receive compensation for the failure to restore their supplies in the required timescales.

"We are also very pleased that all the companies have agreed to pay additional compensation to those customers who had made a valid claim but did not seek a determination from us.

"This goes beyond their legal obligations and is a welcome step."