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Severe-weather compensation scheme in place in Great Britain

Electricity network companies in England, Scotland and Wales have operated a severe-weather compensation scheme since 2023, funded by electricity customers, as confirmed by NIE Networks.

A newspaper on a kitchen table beside a model of rules and regulation

Electricity network companies in England, Scotland and Wales have had a scheme to pay severe-weather compensation since 2023, according to Northern Ireland Electricity Networks (NIE Networks). The cost of that compensation is paid for by electricity customers1. NIE Networks, which operates the network in Northern Ireland, sets out the position in its published answers to customer questions on unplanned power cuts1.

The scheme does not extend to Northern Ireland. NIE Networks states that during extreme weather the service standard for restoring power does not apply there, and that compensation depends on how severe the weather was, as set out in its licence1. Its licence defines a severe weather event as one where the number of high-voltage faults caused by the event is 13 times higher than the daily average number of high-voltage faults1. Storm Éowyn went over that threshold, so the standards did not apply and customers could not claim compensation1.

"Since 2023 electricity network companies in England, Scotland and Wales have had a scheme to pay severe-weather compensation. The cost of compensation under that scheme is paid for by electricity customers."
NIE Networks1

NIE Networks also states that it cannot pay to cover freezer contents, and directs customers to their home insurance provider1. Where a power cut lasts more than 24 hours for reasons other than a severe weather event, compensation may be due1. The company says it told the Utility Regulator that Storm Éowyn met the threshold for a severe weather event and that it was exempt from normal standards of service because it was not reasonably possible to restore supplies within the specified timescale1.

ItemFigure
Properties connected to the NIE Networks network966,0001
Properties on its Medical Customer Care Register27,0001
Staff brought to Northern Ireland after Storm Éowyn4201
Severe weather fault threshold13 times the daily average of high-voltage faults1

NIE Networks says its Emergency Response Plan was in effect from 23 January until power was restored to all homes and businesses1. It says it will not provide a generator for a property during severe weather events, including for households on its Medical Customer Care Register1. The register provides information during a power cut and allows crews to prioritise restoration, and the company says it is vital that these households have plans in place if they lose power1.

Why it matters for households

For a household in England, Scotland or Wales, the practical effect is that a sufficiently severe weather event can trigger a payment, and the money for it comes from electricity bills rather than from the network company's own funds1. That links the cost of storm resilience to electricity network regulation and the charges on your bill, since customers collectively fund the arrangement.

The scheme sits alongside the guaranteed standards that apply in normal conditions, which set restoration timescales and payments when they are missed. Those standards and the exemptions that can suspend them are set out in the power cut compensation and guaranteed standards guidance. Northern Ireland operates separately, with its own arrangements described in power cut compensation in Northern Ireland.

For a home's energy independence, the key point is that compensation is a payment after the event, not a substitute for supply. A prolonged outage still interrupts heating, refrigeration and any medical equipment that depends on mains power. NIE Networks notes that a refrigerator keeps food cold for about four hours if the door is kept closed, and a full freezer holds temperature for about 48 hours, or 24 hours if half full1. Households relying on powered medical equipment are directed to the company's register, and the wider picture for such customers is covered in priority services in Northern Ireland.

What happens next

No further dated steps are set out. NIE Networks states that Storm Éowyn was classified as a severe weather event, so guaranteed standards payments do not apply to it1. It has not reported any change to the England, Scotland and Wales scheme, or any plan to introduce an equivalent in Northern Ireland.

Sources1 cited
  1. Get answers to the most popular questions our customers are asking us about power cuts | Northern Ireland Electricity Networks, nienetworks.co.uk