Energy distributors could be forced to compensate customers who lose power out of their own pockets, with a report into recent storms that cut off more than half a million homes warning that companies need to be pushed into better maintenance and repair of the network.
This meant there was a need to reform the current rules, so electricity distributors were held more accountable for maintenance, repair and emergency responses.To support this, the report recommended these companies pay all compensation to customers rather than state and federal governments, which currently fund prolonged power outage payments for those without power for seven or more days.
The government review also found there was no incentive for distributors to invest in poorly performing parts of the network. “The information provided to customers changed multiple times as new information became available, undermining customer and the community’s confidence and ability to make good decisions about how best to manage their circumstances,” the report said.