Skip to main contentSkip to navigationSkip to key eventsSkip to navigation

Ofgem to review response to Storm Arwen, removes compensation cap for power-cut homes – as it happened

This article is more than 2 years old
Members of the armed forces carry customer care packs, which contain hot water bottles, hats, blankets, gloves and thermal socks, in St John's Chapel, Weardale, County Durham, to hand to residents who have been without power for a week since Storm Arwen caused "catastrophic damage" to the electricity network
Members of the armed forces carry customer care packs, which contain hot water bottles, hats, blankets, gloves and thermal socks, in St John's Chapel, Weardale, County Durham, to hand to residents who have been without power for a week since Storm Arwen caused "catastrophic damage" to the electricity network Photograph: Danny Lawson/PA
Members of the armed forces carry customer care packs, which contain hot water bottles, hats, blankets, gloves and thermal socks, in St John's Chapel, Weardale, County Durham, to hand to residents who have been without power for a week since Storm Arwen caused "catastrophic damage" to the electricity network Photograph: Danny Lawson/PA

Live feed

Key events

Closing summary

Britain’s energy regulator has said today that is launching a review into the power networks’ response to Storm Arwen which left tens of thousands of people without power last week when strong winds swept across many parts of the country.

Ofgem said 10,500 homes are still without power in parts of Scotland and the north of England after gusts of up to 100 miles per hour destroyed power lines. It has lifted the cap on compensation, which means households can calaim up to £140 a day for every day they are without power.

The US economy added 210,000 jobs in November, less than half the jobs growth that economists had expected, while the unemployment rate fell more than expected to 4.2% from 4.6%.

The Bank of England could benefit from waiting to see the impact of the Omicron coronavirus variant on the UK economy before raising interest rates, one of its policymakers has said.

Michael Saunders, who voted last month to raise interest rates, said he believed there could be advantages from taking no action when the central bank meets to set borrowing costs in just under two weeks’ time.

Our other main stories:

Thank you for reading. Have a great weekend! We’ll be back next week. Bye, JK

The US economy added 210,000 jobs in November, less than half the jobs growth that economists had expected in a report that was compiled before the discovery of the Omicron coronavirus variant that now threatens to derail the economic recovery from the pandemic, reports Dominic Rushe in the US.

The unemployment rate dropped to 4.2% as employers added jobs in business services, transportation, warehousing and construction. The overall gain was less than half the 500,000 plus jobs that economists had expected to be added over the month.

November’s jobs report comes after the US added 531,000 in October, a sharp increase after a slowdown in hiring triggered by the spread of the Delta coronavirus variant over the summer.

It remains to be seen whether the Omicron variant will have a similar damping effect on the jobs market. The Organisation for Economic Co-operation and Development (OECD) thinktank warned this week that Omicron and rising inflation could prove significant threats to the global economy.

Ofgem said 10,500 homes are still without power in parts of Scotland and the north of England after gusts of up to 100 miles per hour destroyed power lines and freezing conditions caused faults.

Ofgem chief executive Jonathan Brearley said:

The absolute priority remains getting people back on power as quickly as possible, but for those who have not had power because of Storm Arwen, there are ways for customers to claim compensation by contacting their network company.

The Energy Network Association, which represents the UK’s electricity and gas network companies, said that by Wednesday, 97% of affected homes had been reconnected.

Mark Brown, our north of England correspondent, has spoken to people who have been affected by Storm Arwen.

“Anyone who thinks there is romanticism to reading by candlelight needs their head examined,” said 69-year-old Fran Marshall as she braced herself for a sixth night without power. “There is no romance. None whatsoever. It has been freezing cold and it has been miserable.”

Share
Updated at 

Yesterday, 30,000 households were still without power, a week after Storm Arwen’s gusts of nearly 100mph hit parts of the UK. The energy companies have said they have reconnected about a million homes.

The army has been deployed to help residents in northern England and Scotland who have been without power since the storm caused “catastrophic damage” to the electricity network.

Durham county council said about 100 forces staff would be based in Weardale to help local people.

Share
Updated at 

Consumer group Which? has spelled out customers’ rights here.

Typically your electricity distribution company has 24 hours to restore your electricity supply if it fails due to a storm. Although after a severe storm like Arwen this deadline can be increased to 48 hours. If power isn’t restored by this deadline, £70 should be paid to customers, with a further £70 to be paid for each additional period of 12 hours in which supply is not restored, up to a cap of £700.

But, as just reported, Ofgem is lifting the cap on compensation. Hooray!

Ofgem to review power network response to Storm Arwen, removes compensation cap

Over here, Britain’s energy regulator has said today that is launching a review into the power networks’ response to Storm Arwen which left tens of thousands of people without power last week when strong winds swept across many parts of the country.

The review is aimed at offering better support to customers in case of extreme weather in the future, Ofgem said, adding that the £700 cap on compensation for customers had been removed. Customers can now receive up to £140 a day, for every day they are without power.

#Breaking Regulator Ofgem has launched a review into the response of energy network companies to Storm Arwen and has removed a limit on compensation to allow customers to claim up to £140 per day they are without power pic.twitter.com/NyaCn1nm5h

— PA Media (@PA) December 3, 2021
Share
Updated at 

US economy adds 210,000 jobs, less than expected

NEWSFLASH: The US economy added 210,000 jobs in November, far less than the 550,000 expected, while October’s increase was revised higher to 546,000 from 531,000 and September was revised to 379,000 from 312,000, according to official data.

At the same time, the jobless rate fell more than expected, to 4.2% from October’s 4.6%, while economists had expected a dip to 4.5%.

In just a few minutes, we’ll be getting the closely-watched non-farm payrolls data from the US. They are expected to show that the economy added 550,000 jobs in November, compared with 531,000 in October. A strong number would bolster the case for faster tapering of the US Federal Reserve’s bond-buying programme, and earlier interest rate hikes.

The unemployment rate is forecast to have dipped to 4.5% from 4.6%, while wage growth will also be watched closely.

Share
Updated at 

Bank of England policymaker Michael Saunders sums up the main points of his speech thus:

  • At the November MPC meeting I voted to tighten monetary policy by curtailing the asset purchase program and raising Bank Rate to 0.25%. If the economy develops as I expect, then some additional tightening, on top of such a move, probably will be needed fairly soon.
  • But policy is not on auto pilot. The pace, and scale, of any monetary policy changes will depend on economic developments and the outlook. In particular, at the December meeting, a key consideration for me will be the possible economic effects of the new Omicron Covid variant, and the potential costs and benefits of waiting to see more data on this before – if necessary – adjusting policy.
  • It is likely that any rise in Bank Rate will be limited given that the neutral level of interest rates remains low. Provided we do not delay too long, it should be a case of easing off the accelerator rather than applying the brakes.

Europe’s main stock markets are all trading higher again, although gains are pretty small, as this week’s rollercoaster ride continues in response to the new Omicron variant and hawkish comments from the US Federal Reserve.

  • UK’s FTSE 100 index up 29 points, or 0.4%, at 7,158
  • Germany’s Dax up 32 points, or 0.2%, at 15,295
  • France’s CAC flat at 6,797
  • Italy’s FTSE MiB up 95 points, or 0.37%, at 26,100

Comments (…)

Sign in or create your Guardian account to join the discussion

Most viewed

Most viewed