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| No compensation from electricity firm after Storm Desmond power cuts | |
| (about 4 hours later) | |
| An electricity company will not compensate tens of thousands of households in Lancashire and Cumbria after three-day power cuts following Storm Desmond in December, despite having earlier encouraged them to apply for compensation. | |
| About 55,000 properties in Lancaster and the surrounding area lost power at 11pm on Saturday 5 December after flood defences protecting an electricity substation were breached. Power was not fully restored until Tuesday 8 December, barring a few hours on the Monday, meaning many people were without reliable power for 56 hours. | About 55,000 properties in Lancaster and the surrounding area lost power at 11pm on Saturday 5 December after flood defences protecting an electricity substation were breached. Power was not fully restored until Tuesday 8 December, barring a few hours on the Monday, meaning many people were without reliable power for 56 hours. |
| After the storm, Electricity North West (ENW) encouraged customers to apply for compensation of about £70. But this week the firm admitted on its website that it would not be paying out any money to 22,000 customers who had applied for compensation after checking the guidelines of Ofgem, the energy regulator. | After the storm, Electricity North West (ENW) encouraged customers to apply for compensation of about £70. But this week the firm admitted on its website that it would not be paying out any money to 22,000 customers who had applied for compensation after checking the guidelines of Ofgem, the energy regulator. |
| Under Ofgem rules, anyone without continuous power for 48 hours or more following a severe storm is entitled to compensation. Although many customers in the Lancaster area did not have reliable power for 56 hours, Ofgem does not start counting the 48 hours until engineers are able to access a substation (9.30am on 6 December in this case). The clock restarts if power is temporarily restored. | Under Ofgem rules, anyone without continuous power for 48 hours or more following a severe storm is entitled to compensation. Although many customers in the Lancaster area did not have reliable power for 56 hours, Ofgem does not start counting the 48 hours until engineers are able to access a substation (9.30am on 6 December in this case). The clock restarts if power is temporarily restored. |
| Related: Trying to stay afloat: schools face months of upheaval after UK floods | Related: Trying to stay afloat: schools face months of upheaval after UK floods |
| The decision was described as very disappointing by North Lancashire Citizens Advice Bureau (CAB), which said the money would have been essential for some people and could tip some vulnerable residents into rent arrears. | The decision was described as very disappointing by North Lancashire Citizens Advice Bureau (CAB), which said the money would have been essential for some people and could tip some vulnerable residents into rent arrears. |
| Helen Greatorex, CAB operations manager in Lancaster, called on ENW to pay out to their most vulnerable customers. “I’ve spoken to them twice in the last 24 hours and asked them to use their discretion to compensate customers on means-tested benefits, [and those who are] elderly and disabled,” she said. | Helen Greatorex, CAB operations manager in Lancaster, called on ENW to pay out to their most vulnerable customers. “I’ve spoken to them twice in the last 24 hours and asked them to use their discretion to compensate customers on means-tested benefits, [and those who are] elderly and disabled,” she said. |
| “For some of our clients, who perhaps lost all the food in their fridge or freezer, or had to take time off work to look after their children because the schools were shut, that £70 could make a big difference. It could make the difference between them paying the shortfall on their rent – the amount not covered by housing benefits – and them falling into arrears,” said Greatorex. | “For some of our clients, who perhaps lost all the food in their fridge or freezer, or had to take time off work to look after their children because the schools were shut, that £70 could make a big difference. It could make the difference between them paying the shortfall on their rent – the amount not covered by housing benefits – and them falling into arrears,” said Greatorex. |
| David Barnett, a retired hospice chaplain from Halton, near Lancaster, who was without power for three days barring a brief interlude, said: “I think it’s unreasonable that we have been refused when we were invited to claim by the power company. They must know their own small print ... It strikes me that they saw it as a good PR opportunity to encourage us to apply for compensation when in reality they knew that the vast majority of people wouldn’t qualify. It was a totally pointless waste of time.” | |
| A spokeswoman for ENW said if the firm disregarded the Ofgem guidelines and paid out to 22,000 customers then bills would rise. “Because of the number of customers who have applied, it would have an impact on customers’ bills and we always try to keep bills to a minimum,” she said. | A spokeswoman for ENW said if the firm disregarded the Ofgem guidelines and paid out to 22,000 customers then bills would rise. “Because of the number of customers who have applied, it would have an impact on customers’ bills and we always try to keep bills to a minimum,” she said. |
| ENW is owned by a consortium of funds controlled by the Commonwealth Bank of Australia and IIF International, part of JP Morgan Infrastructure Investments Fund. | ENW is owned by a consortium of funds controlled by the Commonwealth Bank of Australia and IIF International, part of JP Morgan Infrastructure Investments Fund. |
| Martin Deehan, ENW’s operations director, said: “In cases of severe storms such as this, only customers without power continuously for 48 hours – starting when we can access our equipment – automatically qualify for payments. | Martin Deehan, ENW’s operations director, said: “In cases of severe storms such as this, only customers without power continuously for 48 hours – starting when we can access our equipment – automatically qualify for payments. |
| “Having now analysed each claim, and thanks to the monumental effort of our engineers in extremely difficult circumstances, we do not believe that we have fallen below this standard. | “Having now analysed each claim, and thanks to the monumental effort of our engineers in extremely difficult circumstances, we do not believe that we have fallen below this standard. |
| “We will be writing to each customer who has made a claim so that they can use our letter as evidence to claim for any losses as a result of the power cut through their insurance company.” | “We will be writing to each customer who has made a claim so that they can use our letter as evidence to claim for any losses as a result of the power cut through their insurance company.” |
| Ofgem said: “The priority for ENW has been to restore customer supplies as quickly and as safely as possible following Storm Desmond. There are set categories for the compensation that can be paid in the event of storms. Due to the severity of the storm, customers needed to be off supply for 48 hours continuously to be eligible for payment. | Ofgem said: “The priority for ENW has been to restore customer supplies as quickly and as safely as possible following Storm Desmond. There are set categories for the compensation that can be paid in the event of storms. Due to the severity of the storm, customers needed to be off supply for 48 hours continuously to be eligible for payment. |
| “ENW believe that they were able to restore supplies within 48 hours to all customers who were affected by the storm, once they had access to their equipment. Ofgem will closely analyse the data on the faults caused by the storm to ensure ENW took the appropriate steps to safely restore supplies during this event.” | “ENW believe that they were able to restore supplies within 48 hours to all customers who were affected by the storm, once they had access to their equipment. Ofgem will closely analyse the data on the faults caused by the storm to ensure ENW took the appropriate steps to safely restore supplies during this event.” |
| Meanwhile, David Cameron has ordered government officials to intervene in a bitter dispute that broke out between Samuel Smith brewery and North Yorkshire county council over the building of a temporary replacement for a bridge that partially collapsed in the recent floods. | Meanwhile, David Cameron has ordered government officials to intervene in a bitter dispute that broke out between Samuel Smith brewery and North Yorkshire county council over the building of a temporary replacement for a bridge that partially collapsed in the recent floods. |
| Humphrey Smith, multimillionaire owner of the brewery, has refused permission to build a temporary footbridge on its land in Tadcaster near York, describing the £300,000 fix as a “most wasteful proposed public expenditure”. | Humphrey Smith, multimillionaire owner of the brewery, has refused permission to build a temporary footbridge on its land in Tadcaster near York, describing the £300,000 fix as a “most wasteful proposed public expenditure”. |
| Smith also accused the council of letting the 18th-century bridge fall into disrepair – an accusation that provoked an angry response on Wednesday from Don Mackenzie, a councillor and executive member for bridges on North Yorkshire county council. | Smith also accused the council of letting the 18th-century bridge fall into disrepair – an accusation that provoked an angry response on Wednesday from Don Mackenzie, a councillor and executive member for bridges on North Yorkshire county council. |
| “North Yorkshire county council owns over 1,600 bridges so the suggestion we neglect our bridges we dispute most vehemently. We maintain our bridges to very high standards,” Mackenzie said. | “North Yorkshire county council owns over 1,600 bridges so the suggestion we neglect our bridges we dispute most vehemently. We maintain our bridges to very high standards,” Mackenzie said. |
| Motorists are currently forced to take an 11-mile diversion around Tadcaster, while pedestrians are using an old railway viaduct just outside the town. | Motorists are currently forced to take an 11-mile diversion around Tadcaster, while pedestrians are using an old railway viaduct just outside the town. |
| “We’re anxious to reach some agreement with Mr Smith, who I’m sure is a very reasonable man. I’m happy to reassure him on the effectiveness of our general maintenance. He should relent on this for the sake of the people of Tadcaster and allow us to build this bridge.” | “We’re anxious to reach some agreement with Mr Smith, who I’m sure is a very reasonable man. I’m happy to reassure him on the effectiveness of our general maintenance. He should relent on this for the sake of the people of Tadcaster and allow us to build this bridge.” |
| Samuel Smith’s has not returned a request to comment. | Samuel Smith’s has not returned a request to comment. |
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