IN a surprise about-turn, energy regulator Ofgem has dropped plans to fine EDF Energy £2m for its part in the massive power cut last year.
An independent auditor who looked into the power cut which affected 94,000 homes and businesses across Dartford and Bexley and part of Orpington, in July 2009, concluded the company was partly to blame for the incident.
His report to Ofgem said EDF should have provided better security for its Dartford site, where vandals broke in and caused a fire which severely damaged four major electricity cables carried on a bridge over Dartford Creek.
Kent police failed to find those responsible, but suspected the motive was metal theft.
The company has now improved security at the site.
In June this year, Ofgem announced its proposed £2m fine and gave a month for consultation and comment on the punishment.
Today (October 22) the regulator announced there would be no fine and it now accepted the power cut had been an “exceptional” incident after all.
In response to the decision, EDF announced it would be making further goodwill payments totalling £700,000, to the worst affected customers.
It will also set up community funds in Dartford and Bexley each with £375,000 to distribute to projects for the benefit of local communities.
Thousands of EDF customers received letters today (October 22) inviting them to claim another goodwill payment of between £25 and £125 depending on how long they were without electricity.
The company has already paid out £1.1m to customers.
But the £50 payments came nowhere near to compensating people for losing hundreds of pounds worth of frozen food, valuable ornamental fish and their wages and profits from businesses forced to close.
Customers who need help to claim the extra cash can call an EDF helpline on 0800 587 2263.
There are also three drop-in session organised by EDF to answer questions about the payments and help people fill in the forms.
They are being held on Monday (October 25) at the Howbury Centre, Slade Green Road, Slade Green, between 10am and 2pm; on Tuesday (October 26) in the Mendelson Suite, Acacia Hall, Dartford High Street, from 4pm to 7pm and on Wednesday (October 27) at Erith library in Erith High Street between 10am and 4pm.
OFGEM’S decision not to order full compensation for people’s losses caused by the 2009 power has outraged Bexley Council.
Council leader, Councillor Teresa O’Neill said the decision not to make EDF Energy pay up was “disgraceful”.
Cllr O’Neill said: “I know many local people will be disappointed both with Ofgem’s ruling and the length of time it has taken to reach its decision.”
She added: “We made a strong argument that EDF was, at least, partly responsible for failing to secure the supply network, and I know how much some residents and business people lost as a result of being without power.”
On the issue of the extra compensation and the community fund of £375,000 announced by EDF, Cllr O’Neill said: “I am disappointed EDF is not willing to compensate more of its customers, but I accepted because I would like to see some good come out of the incident.”
Bexley has decided to give the £375,000 to the new Europa Gym Centre being built in Crayford, which Cllr O’Neill said would be “a wonderful asset to the community”.
Bexleyheath and Crayford MP David Evennett said he was disappointed the report had taken so long to be made public.
He said: “The report does acknowledge concerns that EDF Energy could have done more to prevent this incident .”
Mr Evennett also welcomed the extra cash.
DARTFORD Council leader Councillor Jeremy Kite said he was disappointed at Ofgem’s decision.
He said: “It has not been a bright shiny day for EDF.
“It is trying to keep its record squeaky clean on this incident but has accepted it has had a narrow escape on a technicality.”
Cllr Kite said the extra money, although “a drop in the ocean” to EDF, was welcome.
He said the council would be calling some of the affected customers together, to decide how the community fund would be spent.
Cllr Kite explained: “I would not be comfortable with the council making that decision.”
He credited campaigner Rosanna Currans with keeping Ofgem involved in the incident and said she should be one of the customers involved in the spending decisions.
Mrs Currans is still angry with EDF, especially with its decision to discount the first eight hours of the power cut when assessing extra payments, saying because of the police investigation, engineers were not allowed on-site until 8pm on July 20.
She said she felt EDF had “twisted Ofgem’s arm” into dropping the fine.
Mrs Currans added: “As far as I am concerned, EDF has got away with it.”
But she applauded Cllr Kite’s decision to allow customers to decide how to spend the £375,000 community fund.
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