Damages
As well as, or instead of, an injunction, you can claim damages (ie, monetary compensation) for a supplier or transporter’s abuse of its powers or failure to comply with its statutory or contractual duties.1Faulkner v Yorkshire Electricity plc [1994] February 1995 Legal Action 23; Gwenter v Eastern Electricity plc [1994] August 1995 Legal Action 19 If your supply is accidentally cut off, you may be able to claim damages for negligence and damage which has come directly from the interruption of electricity or gas supply (but not for the pure supply interruptions themselves). A claim for damages for breach of contract must be based on the amount necessary to put you in the position you would have enjoyed had the contract been performed. Losses that are reasonably foreseeable at the time the contract was made as being a likely outcome of the breach of contract may also be recoverable. In a case of negligence and a claim in tort arising from a harmful act, the measure of damages is the sum necessary. In a case of failure to supply, damages would cover compensation, not only for the distress and discomfort of being without a supply, but also for additional expenses (eg, takeaway meals) and the loss of specific items (eg, fridge/freezer contents). Interest can also be claimed on any sum awarded in damages. In other cases, the failure of a supplier to disconnect a supply may amount to breach of a duty of care where harm results – eg, a fire which arises in circumstances where electricity should have been cut off.2See Red Star Pub Company (WRII) Ltd and Others v Scottish Power Ltd [2016] CSOH 100 All such losses arising from the breach of contract or duty of care by a supplier need to be specifically set out and pleaded in any claim. Claims for death and personal injury may also be brought in a case of electrocution arising from faulty equipment or supply.3Hartley v Mayoh & Co [1953] 2 All ER 525; Sellars v Best [1954] 2 All ER 389 A claim for negligence may also arise where a supplier has caused damage or breached safety rules and damage to a person or property has resulted. What is safe is judged as an objective question by reference to what may be reasonably foreseen by a reasonable and prudent employer. It is also crucial that any breach of duty, including breaches of codes of practice or duties imposed by statute, can be shown to be responsible for causing the damage for which compensation is sought.4Smith and Others v South Eastern Power Networks plc and Other Cases [2012] EWHC 2541 QBD(TCC) In cases of personal injury and loss, it is necessary to be able to prove negligence and the mere fact of a gas explosion cannot be relied upon to show negligence on the part of a distributor.5Shepherd v Northern Gas Networks Ltd [2022] (HC) Newcastle Upon Tyne District Registry, 14 April The Economic and Corporate Transparency Act 2023 creates a new offence of fraud whereby an organisation, such as an energy company, is criminally liable where a person associated with it (eg, employees, agents, subsidiaries and others performing services for or on its behalf) commits fraud. The offence occurs where the fraud was intended to benefit the organisation and the organisation did not have reasonable procedures in place to prevent the fraud. The offence is one of strict liability for the organisation; prosecutors will not need to show that the organisation’s leaders authorised or had knowledge of the fraud. If convicted, the organisation is liable to an unlimited fine.