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Large voltage variations — a surge of electricity at a much higher voltage than normal or a sudden drop in the voltage — can damage residential and commercial appliances and equipment, but there are rules about compensation.
The ESC’s Voltage Variation Compensation Guideline requires Victorian electricity distributors to compensate certain customers whose property is damaged as a result of a voltage variation.
To be eligible for compensation, the customer’s annual consumption of electricity must be less than 160 megawatt hours (less than around $20,000) and damage to their property must have resulted from a voltage variation outside the limits prescribed by the Electricity Distribution Code — that is, a power surge or low voltage event.
Under this compensation guideline, electricity distributors are generally not obliged to compensate customers for consequential losses, e.g. lost computer data or programmes, but food spoilage is considered a direct loss.
Compensation is on an ‘old for old’ basis — that is, property damaged is valued at its current value, not its replacement value. If a case about voltage variation comes to EWOV, there can be negotiation about what is fair and reasonable.
Return to Protecting consumers EWOV and the legal frameworks
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