Conclusions and recommendations
Robustness of the grid
1. We
regard SSE's recent performance on Islay as unacceptable. We are,
however, pleased that, after a sustained period of poor service,
SSE is now providing the necessary investment in Islay's electricity
infrastructure. SSE should keep us informed of its progress in
completing the four major investment projects it has planned.
(Paragraph 19)
Monitoring at a finer level
2. We
recommend that Ofgem monitor and regulate network performance
on a more detailed geographic scale, particularly for areas which
are known to have experienced poor service or are exempt from
some of the usual performance safeguards such as the Guaranteed
Service Standards. These performance measures should as far as
possible be made available to the public in an easily accessible
and understandable form. (Paragraph 23)
Reinforcement
3. Ofgem
should report to the Committee of how well transmission and distribution
network operators are working together to ensure that when new
transmission lines are constructed, distribution lines are linked
at points to bypass the existing vulnerable lines to take electricity
to the communities which suffered the most during recent storms.
It should also advise the Committee on what steps it is taking
to strengthen cooperation in this area. (Paragraph 28)
Emergency communication
4. The
relationship between communities, the local authorities and their
energy supplier is extremely important, particularly in rural
areas such as Islay. SSE should review how it engages with communities
and local authorities during emergencies to ensure that the information
relayed back to its customers is accurate. (Paragraph 42)
5. The identification
of vulnerable individuals in an emergency situation is paramount.
Ofgem, power companies and local authorities should work together
to ensure the maximum flow of information within the constraints
of the Data Protection Act. (Paragraph 47)
When compensation applies
6. It
should be noted that SSE went beyond statutory requirements and
decided to compensate those customers in the Highlands and Islands
worst affected by the recent storms. We recognise that severe
weather conditions pose particular challenges to distribution
network operators serving the Highlands and Islands but believe
that customers in those areas should still expect to receive compensation
if minimum standards of service are not met. We recommend that
Ofgem introduce best practice guidance for DNOs serving the Highlands
and Islands, setting out minimum levels of service their customers
can expect and corresponding levels of compensation. (Paragraph
50)
The level of compensation
7. While compensation levels may be set at an
appropriate level to incentivise good quality of service from
DNOs, we do not believe that they adequately compensate consumers
for the consequences of power cuts. We recommend that Ofgem consider
increasing compensation levels so that they more realistically
reflect the effect on consumers. (Paragraph 56)
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