“It was a nightmare, why shouldn’t we get compensation like everyone else?”
Reporter: Nick Statham, Local Democracy Reporter
Date published: 10 July 2022
Neil Moores at his home at Hollingworth Lake Caravan Site
When Storm Arwen hit Greater Manchester with gale-force winds and heavy snow last November, it left tens of thousands of homes without power.
The vast majority were able to claim compensation – £70 for each day without electricity up to a maximum of £700 – from Electricity North West, the region’s power network operator.
But that was not the case for the unfortunate residents of Hollingworth Lake Caravan Park, in Littleborough.
Residents went nearly three days without access to their usual power supply for cooking and heating, and were forced to throw away food they had kept in their freezers.
“It was horrendous,” recalls Neil Moores, aged 67, who has lived at the site with wife Linda for 22 years.
“We had no heating, because central heating won’t work without electricity and we have got an electric hob.
"So we had to use a little one-ring gas stove to get some hot water or heat up a pan of soup.”
He added: “The power was off for 66.5 hours in sub zero temperatures.
"There are 38 residents on the park, most of whom are elderly.
"Thankfully because of the alternative sources of heating, cooking and lighting put in place by the able bodied, site owners and the local council, we avoided any fatalities.”
But Neil, who worked in the energy industry for 30 years, was shocked to learn that residents were not entitled to compensation as they buy their power from the site owner, not direct from the supplier.
He continued: “Our electricity bills averaged around £200 per quarter at the time of the powercut.
"Without this loophole we should have been eligible to a compensation payment of £140 each.
"This would have helped to cover our losses including freezer contents and for the hardship we all went through.”
The Local Democracy Reporting Service understands that the site owner was able to claim £140, but not a lump sum to cover everyone living at the park.
They are currently talking to the industry governing body about distributing the money, as tenancy types – owners, visitors and renters – vary on the park.
“The issue now is not the money, it’s the principle,” said Neil.
“We have people here in their 80s – if not for the rest of us we could easily have had a fatality, with the sub-zero temperatures and how bad it was.”
And with severe storms seemingly happening more frequently residents are worried they could be in the same situation again.
“It is unfair, we are paying our electricity bills just like anybody else – the only thing is we are not paying directly to a supplier,” Neil added.
“My argument is there was no fault with the site owner or the cables and electricity here – all that was fine – it was their system that went down.”
After learning of the situation – which affects thousands of people with similar power arrangements – Rochdale MP Sir Tony Lloyd wrote to the government to request a change in the legislation.
However, the reply from energy minister Greg Hands said current compensation rules were set to remain in place until March 2023, although regulator Ofgem was ‘considering’ its arrangements from April 2023.
Neil described the response as ‘upsetting’.
“It’s not really a very good answer – if something is unfair, why are they not looking into it now?” he said.
Someone who very much shares his sentiments is fellow resident Maureen Atkinson.
“It was extremely hard – so not to get any compensation from it when other people have, it just doesn’t seem fair,” she said.
“It was terrible to be honest with you – very cold and then all the food in the fridge had to be thrown away.
"I was wrapped up in blankets, had my coat on – and had a hot water bottle I had found.”
Maureen, who lost her partner shortly before the storm hit, added: “It was really quite a nightmare.
"And for me it was the first time something like that had happened and I was on my own.”
She estimates she lost at least £100 worth of food – and claiming on her insurance would not have been worth it, once the excess was taken into account.
Littleborough Lakeside councillor Tom Besford, is backing residents such as Neil and Maureen in calling for a change to the law.
“For the residents of Hollingworth Lake Caravan Park and many hundreds of others across the region, this whole thing is deeply unfair,” said Coun Besford.
“They pay their bills just like anyone else, but because of the quirk of the system, are not entitled to compensation when the supplier isn’t able to keep the power on.
“I call on the government and Electricity North West to do the right thing and properly compensate some of the most elderly and vulnerable residents in our community.’
A spokesperson for Electricity North West said: “Under Ofgem’s current rules, bill payers with a direct relationship to an electricity supplier fund the power network so it would be those who are entitled to the compensation when there are long power cuts.
“If a consumer such as a tenant in a house share or caravan park is not the direct bill payer to the supplier, then it is up to the person who pays the supplier direct to share any compensation with tenants.
They added: “We would encourage any business where this is likely to be an issue to discuss in advance what they will do so the situation is clear to their residents, and then all can consider what steps are appropriate to take including sharing any compensation that might be paid or, other alternative arrangements for instances such as extreme weather where prolonged power cuts can occur.”
A spokesman for the Department of Business Energy and Industrial Strategy said it was ‘unacceptable that thousands of homes were left without power for so long as a result of Storm Arwen’.
They continued: “Action is being taken, with energy regulator Ofgem considering the arrangements for the next price control period from 2023, including a full review of the eligibility criteria for compensation claims due to power disruptions.”
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