Minister to bring forward storm compensation law
Summary
Northern Ireland’s economy minister plans to introduce a law that would require electricity companies to pay compensation to households that lose power during severe weather. This move aims to remove the current exemption that stops companies from making such payments during storms, though the independent regulator warns this could raise costs for all consumers.Key Facts
- Northern Ireland is the only part of the UK without a compensation scheme for power outages caused by severe weather.
- The electricity grid owner, NIE Networks, is currently exempt from meeting supply standards during bad weather.
- After Storm Éowyn caused widespread power outages, local ministers wanted NIE Networks to pay compensation voluntarily, but the company refused.
- The economy minister, Caomíhe Archibald, is working to remove the severe weather exemption so consumers can have legal compensation rights.
- The independent Utility Regulator suggests it is better to invest money in strengthening the electricity network to withstand bad weather instead of paying compensation.
- There is a concern that compensation costs might be added to all customers’ electricity bills, increasing their costs.
- The minister plans to present detailed proposals before the next Northern Ireland Assembly election.
- "Policy costs," which are parts of electricity bills that fund government policies like support for renewable energy, have been growing and do not depend on how much electricity consumers use.
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