Power Cuts & Energy Bills: Costs, Compensation & Impact

A power cut can be upsetting. Many people think about how it changes their energy bills. A power outage does not lower your energy costs. Your standing charges still stay the same during a blackout. Also, you might wonder if you can claim money back from your energy supplier.

Do Power Cuts Reduce Your Energy Bill?

A power cut is when your electricity goes out for a short time. It doesn’t mean that your bills will be lower. Here’s why:

1. Standing Charges Still Apply: You still pay a daily standing charge even if your home has no power. This is a fixed cost for maintaining the electricity network.
2. Smart Meters & Estimated Bills: If your smart meter stops working during a network outage, your energy supplier might estimate your usage until it is back online.
3. Appliances Restart at Higher Energy Use: After a power outage, appliances like fridges, heating systems, and internet routers may use more electricity to get back to normal.
4. Direct Debits Continue as Normal: A planned power cut or severe weather does not stop your monthly direct debit payments.

Tip: If your smart meter does not update readings after a power outage, contact your energy supplier. They can check if any billing adjustments are needed.

How Power Cuts Affect Different Energy Plans

Different energy contracts can change how power outages affect your bills.

Tip: If you have a prepayment meter, make sure your credit is still active after the power comes back. If your meter shows an error, get in touch with your energy supplier.

Compensation for Power Cuts & Energy Bills

If a power cut goes on for a long time, you might be eligible for a compensation payment. Remember, Distribution Network Operators (DNOs) handle issues with electricity supply interruptions, not your energy supplier.

You may be eligible for compensation if:

1. The power cut happened because of a single fault in the network.
2. You had no electricity for a certain number of hours (look at the table below).
3. The outage was not a planned power cut. You did not get much notice about it.
4. You are in Northern Ireland, England, Scotland, or Wales and have had long interruptions.

Compensation Rates for Power Outages

📌 How to Claim Compensation:

1. Your distribution network operator (DNO) will pay you automatically within 10 working days.
2. If you do not get your payment, contact your network operator directly.
3. If your claim gets rejected, take it to the Energy Ombudsman.

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Power Cuts & Smart Meters: What You Need to Know

A smart meter can be impacted by a power cut. This is especially true if it uses a wireless network to send its readings.

1. After a power outage, your smart meter should reconnect by itself.
2. If the display is not showing anything, reset the meter by turning off and on the fuse box.
3. If you see missing readings, your energy supplier may guess your usage for that time.
4. For those who use essential medical equipment, a smart meter outage will not stop your power supply, but it is a good idea to check your backup options.

Tip: If your smart meter does not update for several days after a power cut, ask your supplier for a manual meter reading.

What to Do During a Power Cut

1. Check If the Issue Is Local

1. Check the streetlights and neighbouring homes to find out if everybody is affected.
2. Look at the fuse box. A tripped switch might be the problem.
3. If only your home is without power, reach out to your energy supplier.
4. If everyone is affected, tell your local network operator about the situation.

2. Contact Your Network Operator

Tip: You can find your DNO by using your postcode on the Energy Networks Association website.

3. Protect Your Appliances

1. Turn off ovens, irons, and heaters. This stops damage from power surges.
2. Keep freezer doors closed. This helps keep the cold temperatures inside.
3. Check medical equipment. If you use essential medical devices, make sure you have a backup power supply.

How to Reduce Energy Bills After a Power Cut

1. Check your appliances for any recent updates. This can help improve their energy use.
2. Unplug devices you are not using. This stops them from using extra power.
3. Use energy-saving settings on your appliances. They can lower your energy bills.
4. Regularly clean your appliances. A clean appliance works better and uses less energy.
5. Consider switching to LED bulbs in your home. They use less power than regular bulbs.
6. Plan your appliance use. Try to run them during lower-rate hours to save money.
7. Turn off any appliances you don’t need before the power comes back.
8. Unplug devices that have a manual release handle, like electric stairlifts, to prevent them from turning back on suddenly.
9. Keep an eye on your smart meter readings to see if your energy use goes up.
10. Get in touch with your energy supplier if your bill looks too high after a power cut.

Tip: If you have worries about billing or compensation, go to your energy supplier’s website. There, you can use their online webchat or call the helpline number to get more information.

How Do Power Cuts Affect Energy Tariffs & Future Prices?

Power cuts can impact energy prices. Changes in electricity demand and how stable the network is can lead to higher future costs.

1. Short Power Cuts & Demand Response: The National Grid might use the Demand Flexibility Service. This helps stop blackouts by giving rewards to users who reduce electricity use at specific times.
2. Energy Prices After Major Outages: Major blackouts can cause higher electricity costs in the market. This might mean higher tariffs over time.
3. Rural Areas & Tariff Adjustments: Some rural areas face more overhead line failures. This can change costs for the network distribution operator, which may lead to tariff adjustments.

Tip: If you have a variable price plan, see if power cuts change the lower prices on your bill.

Does a Power Cut Affect Gas Supply & Billing?

Power cuts usually affect electricity. However, sometimes, they can also hurt gas supply.

1. Gas Boilers & Heating: If your boiler uses electricity, a power cut will stop heating and hot water.
2. Prepayment Gas Meters: If the power cut affects smart prepayment meters, you might have to reset your gas meter when the power comes back.
3. Network Operator vs. Energy Supplier: Your network operator takes care of gas outages, while your energy supplier handles billing issues.

Tip: If your gas supply does not work during a power outage, visit the Energy Networks Association website for updates.

What Support Is Available for Vulnerable Households During Power Cuts?

If you depend on important medical equipment, power cuts can be a risk. You might qualify for additional help:

1. Priority Services Register (PSR): This is a free service from energy suppliers and network operators that gives extra help.
2. Medical Equipment & Power Backup: If you use oxygen machines, stairlifts, or diabetes sensors, talk with your care provider about backup power options.
3. Emergency Calls & Safety: If you only have a landline phone, ask your landline provider to make sure it works during power outages.

Tip: Sign up for the Priority Services Register. This will help you get early notices about planned power cuts. You can also get help in emergencies.