All distributors compensate customers for surge damage in some circumstances. However, the guidelines are a significant improvement on current practice, by providing customers with a right to compensation, standardising compensation arrangements and establishing avenues for customer redress. The initiative implements a decision taken in the Office s recent Electricity Distribution Price Determination. The guidelines were developed in consultation with customers representatives, the distributors and the Energy and Water Ombudsman. The surge compensation scheme is one of a number of initiatives introduced by the Office in 2001 to protect customers with respect to the reliability and quality of supply.
Distributors have a financial incentive to reduce the incidence of surges and brownouts over time.
It covers any person whose property is affected, not just the customer. Certain requirements must be met to verify claims and any person whose claim is rejected has the right to raise a complaint with the Energy and Water Ombudsman. The guideline applies in respect of any claim for compensation or complaint occurring on or after 1 January 2001 and not settled by 1 April.