This letter sets out the findings of our Stage 2 review of Distribution Network Operators’ (DNO) performance during the exceptional storms that affected almost a million customers over Christmas 2013.
It follows our initial report published in March 2014, where we outlined we would further investigate the events because of the differences we found in DNO performance during the storms.
In particular, we said we would focus on the southern DNOs, SSE and UKPN, who were affected more significantly than other companies’ networks, each having almost 1100 incidents, affecting a quarter of a million customers on their networks.
We also said we would review the Guaranteed Standards of Performance (GSOP) payments made to customers following a severe weather event. Following consultation, we have published our decision on the GSOP.
The independent review shows that while SSE and UKPN’s southern arms were particularly badly hit by the storms, they could have done more to get customers reconnected faster and to keep them better updated on what was happening.
In light of these findings, the companies have agreed to make donations totalling £3.3 million to organisations like British Red Cross, which play an important role in helping vulnerable customers during power cuts and severe weather.
In our March report, we requested all companies write to us setting out the additional steps they are taking. They have all done so and we expect these steps, along with the additional payments required under the Guaranteed Standards, to result in improved levels of performance across the DNOs in the future for any major interruptions. If we don’t see this, enforcement action could be taken in future cases.
View our Stage 2 report findings in full below.