Ofgem consults

A consultation document published by Ofgem yesterday (7 June) says that EDF Energy (EDFE) “will be penalised under the IIS (Interruptions Incentive Scheme) for interruptions associated with the Dartford [power cut] event. We estimate that this will result in a £2m penalty on EDFE under the IIS”.

EDFE has applied for the incident at Dartford Creek cable bridge, during which 94,000 people across South East London and North West Kent were without power for up to three days, to be exempt. However, the Appointed Examiner has recommended that an exemption should not be allowed due to their failure to prevent the incident from occurring.

The IIS is a different to the Guaranteed Standards Scheme, under which customers make claims if they are without power for over 18 hours.

Commenting on the consultation, Bexleyheath and Crayford MP David Evennett said “I am disappointed that nearly a year after the incident occurred, we still appear to be some way from a resolution.

“Ofgem’s consultation says that EDF Energy was at fault for not properly securing the site – as I have argued since last July – and the £2million revenue penalty partly acknowledges this. I shall be writing to Ofgem accordingly.

“However, in my opinion, EDF Energy still needs to honour every claim for recompense under the Guaranteed Standards Scheme submitted to them”.

You can find the consultation document here: http://www.ofgem.gov.uk/Networks/ElecDist/QualofServ/QoSIncent/Documents1/Final%20Dartford%20Consultation%207%20June%2010.pdf

Regarding the consultation process, the document states:

“Ofgem is seeking views on its minded to position, particularly whether our approach is proportionate and whether it is reasonable for us to expect EDFE to have had better security measures in place at Dartford Creek. We would like to establish the approach taken by other DNOs for the security of similar installations and to gather any further evidence or information that should be considered before the Authority gives its direction. The consultation closes on 7 July 2010 and we would anticipate publishing the final decision at the beginning of August 2010”.

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