Compensation rules nearing for outage-affected electricity users

Local authorities working on the country’s first ever framework offering compensation to electricity users affected by lengthy power cuts as a result of extreme weather conditions are edging closer towards finalizing their plan and forwarding it for approval.

RAE, the Regulatory Authority for Energy, the entity working on the compensation plan, is expected to finalize its proposal next week, sources have informed.

Distribution network operator DEDDIE/HEDNO will be held accountable for damages to electricity users caused by lengthy power disruptions, defined as over 72 hours long, according to the rules being prepared.

However, the compensation package will be limited to areas with up to one million power meters. This restriction excludes Athens, whose population is estimated at 3.1 million, from the compensation package.

Compensation amounts will be many times over distribution network fees paid by electricity users but will not exceed 2,000 euros, the sources informed.

This set of rules was proposed by DEDDIE/HEDNO in consultation staged last December. During this procedure, the operator had pointed out that it faces challenges to swiftly repair network faults as a result of a lack of equipment for identifying points where supply has been cut.

The operator, during this consultation procedure, also made note of the country’s low percentage of underground power lines, just 11 percent of the 240,000-km total, exposing most of the grid to the threat of damages and outages during adverse weather conditions.

The need for a compensation package covering electricity users arose following network damages that impacted numerous households and businesses during extreme weather events in recent times.