Power cut consequential loss & damage claim

[Number6]

We had a power cut here this morning; once power was restored we found terminal damage to some IT equipment. We intend to claim redress from the network distro company (Central Networks).

I'm looking for confirmation that:

a) It is the distribution company that we claim from?

b) The procedure is standard, i.e. polite letter followed by LBA followed if necessary by N1 court claim?

c) That we can claim for the cost of replacing the damaged equipment plus any additional costs, for example my time taken up in putting everything right again?

Does anyone have an address to send my claim to Central Networks to?

Any comments thoughts appreciated.

Pete

[ozzywizard]

Hiya Pete,

The standard relply you will get will be along the lines of "Contact your insurance company for damage etc" However they caused the damage so should with the right persuation pay out so yes your process is correct.
I know they pay out a lot in the similar circumstance to TV freeview and satelite systems as power surges after a powercut really messes with them, even if an engineer changes the meter and they do not turn appliance off first it can cause damage, things like comps and TV eqiipt need to be turned off in the proper process and they are aware of this. As your unique referance include your MPAN number on the letters. If your not sure of this then you can PM me or look on your meter or ask your supplier.
Central Networks,
Pegasus Business Park,
Herald Way,
Near East Midlands Airport
Castle Donnington,
Derbyshire,
DE74 2TU

[Number6]

Many thanks ozzywizzard

Pete

[Number6]

I'd like a bit more advice if anyone has any to offer please.

I wrote to Central Networks with a holding letter, basically informing them that I will be making a claim in due course. I haven't yet got around to getting quotes for replacement kit.

Anyway, I had a letter from Central Networks asking me to call someone in their customer liaison dept.

I rang today and the gist of the conversation was that the fault was due to a third party company damaging a high voltage cable. CN are trying to get the details of this third party and they tell me that I will have to claim from the third party, not CN.

I replied that I will be claiming from CN, not any third party, nor will I claim from my insurance company. The spekesperson said that they will not entertain any claim.

Question is - do I persevere with my claim against Central Networks? What arguments or points of law do I present to them to show that they are liable? It's not a small claim, it will be for something like a grand once I've totted everything up.

Many thanks.

Pete

[Number6]

This is what I just received via email following my telephone conversation today:

14 February 2007

Interruption to Electricity Supplies – 05 February 2007

Dear Number 6

Further to your letter received here 08 February 2007 and our subsequent telephone conversation of today referring to the above. Please accept my apologies for any inconvenience caused as a result.

The interruption on 05 February were caused as a result of a high voltage cable fault ~ further investigations into the cause found that third party contractors had damaged our underground cables. Potentially three thousand eight hundred and seventy customers were affected by this interruption.

Whilst I appreciate the inconvenience caused by any supply loss, I regret that Central Networks cannot guarantee a continuous supply of electricity as there will always be circumstances, beyond our direct control which can affect the network. In these circumstances we always restore supplies within the shortest possible time.

In respect of any claim for any loss or damage, the disruption caused by any supply interruption is clearly regrettable. Where an incident results from circumstances beyond our direct control and which could not have been reasonably foreseen, we are unable to accept liability.

Central Networks do endeavour to provide a continuous supply of electricity but as circumstances can occur which are beyond our control, we are unable to guarantee an interruption free supply, as stipulated in your supply connection agreement. We therefore advise our customers to insure against any losses, which may occur as a result, as consequential and economic losses are not recoverable under current law (The Electricity Supply Act 1989 & Associated Regulations. We can only suggest that you claim via your own insurers.

However as this incident was the result of third party damages we shall be seeking to recover our costs from those responsible. Although we are not aware of their policy with regard to compensation should you wish, you too may address a claim to them for consideration.

The address you can contact them is as follows:-

xxxxxxxxxxxxxx
xxxxxxxxxx
Leominster
Herefordshire
HR6 0QF

Tel; xxxxxx


Once again, I apologise again for any inconvenience caused.

Yours sincerely


Sharon Pritchard (Mrs)
Customer Liaison

Any comments before I go in with guns blazing?

The faults were definitely caused as a direct result of (or exactly coincidental with) the power cut / restoration of power.

Pete

[danch2000]

TBH Pete I think you will not get anywhere with this as having worked in the energy supply industry know that any damage caused must be claimed under your insurance.

Also IT equipment should always be either surged protected or if servers etc on UPS.

Sorry

Dan

[buzby]

There was no negligence on CNs part - so I think any action against them would fail, especially as all they do is refer to their considitions of service that give them (quite a wide) latitude from being held wholly responsible. Just as people in Norfolk didn't get new telephone answering machines when a lightning strike took out their phone line. BT then fitted lightning arrestors.

It could be argued that the consumer also has a duty of care, and although all my power cables are u/g and I live in an urban area, my power supply varies (by voltage) from 228 to 255, and have many surges a week - all of which is recorded and trapped by my own equipment. Having seen how variable my supplies are, I have all important kit protected.

[mdb98ras]

I have had a similar problem in that my supply was interrupted and we suffered a loss of earnings. The outage was due to contractors cutting through the supply cable. I realise that I am going to get nowhere with the supply company, Powergen, or CN as the fault lies with the contractors.

Question is should I pursue with a claim for consequential loss against the people who caused the damage, or should I give up. I would be interested to hear if anyone has been succesful to this regard.

Thanks

[buzby]

The problem is really where the blame truly lies, the supply company's never provide a full 100% uptime guarantee, so pursuing some sod who sliced through a cable though malice or ignorance might fly, but since the primary supplier is exempt from action for 'faults', there is an argument you should claim on your 'business recovery' insurance, or at the very least have your own UPS to keep vital services going.