Energy Networks to be fined for storm outages?

3 January 2014

Energy. Lots of it. Expensive. Ofgem is threatening to impose fines on the energy network companies if they can prove that they dawdled and stuttered while taking too long to restore the power during outages in Christmas storms.

Around 50,000 homes were left without power for five days and, under Ofgem rules, these companies have to ensure that they have sufficient resources available to operate distribution "properly and efficiently".

Ofgem says that "further action," on top of fines, could also be taken against the energy network companies.

UK Power Networks admitted that the group, who between them supply eight million homes and businesses in the South East "could and should have done more" to restore power. As a result, they have almost trebled the compensation for homeowners £27 to £75.

Elsewhere, the Big Six energy firms are also required to answer some questions and give evidence to a committee of politicians over why restoring the power to households was so drawn out and laborious. Energy Select Committee chairman Tim Yeo said that the Big Six energy groups needed to explain their "unacceptable performance". As these companies provide 99% of the energy in Britain, they clearly need to buck their ideas up.

Yeo said in a statement: "I'm very concerned about how long the network distribution companies took to restore power to thousands of customers. The Committee will call them in when the House gets back. I'm already concerned that these distribution companies are not properly scrutinised by Ofgem, despite being effectively monopolies. Their performance over Christmas was unacceptable."

TOPICS:   Utilities

1 comment

  • Celebrity S.
    Ah yes , this will be an ideal opportunity for the Energy firms to increase their prices yet again .

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