Households given free £2,000 payments after extreme weather | Personal Finance | Finance

October 6, 2025 3,995

Power cuts could hit UK households this winter as more wet, windy and extreme weather returns up and down the country.

But if you do end up having a power outage, you could claim compensation up to a whopping £2,000.

A little known compensation scheme run in partnership with energy regulator Ofgem sees households remunerated up to a possible £360 if they are without power for a long time plus an extra £95 if it happens regularly. But in high category storms, this can rise to an eyewatering £2,000.

While most power cuts caused by weather are over within a few hours, if your power cut drags on and puts you off the grid for longer than 12 hours, compensation starts to be owed to you.

The Energy Networks Association explains: “In the rare event you have a power cut, you may be entitled to compensation. This is usually automatically paid by cheque to customers who are eligible to receive it.

“You might be entitled to compensation if your electricity supply goes off. What you can claim depends on: if it is due to planned works; how long you don’t have electricity; if a network operator has not met standards set by Ofgem, the GB energy regulator.

“Network operators are regulated by Ofgem. Ofgem sets service standards network operators must meet. These include rules on how quickly operators must restore supply in normal and severe weather conditions, and compensation consumers get if standards aren’t met.”

In normal weather, when a power cut affects fewer than 5,000 properties, households can get £95 for a fault lasting more than 12 hours. For businesses, this rises to £180.

Then, both homes and businesses can get an additional £40 for every extra 12 hours the outage continues.

For a power cut of more than 5,000 properties, it’s £95 for being without power for more than 24 hours, and an additional £40 for each further 12 hours, “up to a total of £360”.

If your home is cut off more than four times a year for at least three hours each time, you can also get another £95 on top.

But in extreme weather, the amounts can rise to £2,000.

Energy Networks Association adds: “The amount of compensation you could get depends on the category of the severe weather, and how long you were without a power supply. There are two storm categories. They are based on the impact the storm has on the electricity network, such as damage to pylons and overhead cables. The categories are different to the storm categories issued by the Met Office and are determined by the energy regulator, Ofgem.