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The Canberra Times
The Canberra Times
Jasper Lindell

Huge power surge fries appliances with residents still awaiting compensation

Residents have been left frustrated by the response to a January power surge in Farrer. Picture by Colleen Petch

A massive power surge destroyed appliances across three streets in Farrer three months ago, but residents are yet to receive compensation from the electricity grid operator.

Evoenergy has admitted it has taken too long to process compensation claims for its electricity customers whose appliances were fried in the power surge.

But the company, which is part-government owned, stood by its decision to force customers who ultimately agree to compensation deals to sign non-disclosure agreements.

A fault in a neutral conductor in Farrer caused a power surge to 84 electricity customers at 11am on Friday, January 20.

Affected homes were located on Gatton Street, Marshall Street and Spafford Crescent, with residents reporting thousands of dollars worth of damage.

Air conditioners, computers, fridges, lights and other mains-powered equipment was destroyed.

Evoenergy general manager Peter Billing said an investigation had shown it was the first fault of its kind on Canberra's electricity grid.

"I think regardless of Evoenergy's view on this, I think we recognise it's been frustrating for the customers involved. They clearly felt it should have been dealt with sooner," Mr Billing told The Canberra Times on Thursday afternoon.

Mr Billing said he expected the vast majority of claims would be dealt with over the next fortnight.

"We've tried to go through a pretty solid process, but we're now committed to resolve or resolve these claims as quickly as we possibly can over the next few days," he said.

Residents have described repeated delays to the claims process.

"We're certainly committed to getting this done as quickly as possible from here on in," Mr Billing said.

Mr Billing said residents would be required to sign non-disclosure agreements in cases where compensation exceeds Evoenergy's standard compensation policy.

"It would be at the point of time that they had agreed that our response to their claim meets their needs," he said.

The utility company would look at every single claim "fairly and work with every individual customer but they will be different. That's just the reality", he said.

Marisa Paterson, a Labor member for Murrumbidgee in the Legislative Assembly, earlier on Thursday wrote to Evoenergy, calling on the company to pay full compensation for the residents' losses.

"I want to stress the substantial and ongoing emotional and financial toll that this incident has had on households," Dr Paterson wrote in a letter seen by The Canberra Times.

"I believe residents have acted in good faith and looked to Evoenergy for an appropriate, swift resolution, however, this has not happened and now they find themselves in desperate and heightened position, with many residents now facing a Canberra winter with no heater until this is resolved."

Do you know more? Email jasper.lindell@canberratimes.com.au

Residents have said Evoenergy had offered to cover the depreciated value of their damaged appliances, which would not cover the replacement cost.

Mr Billing said while Evoenergy's standard process for claims was to pay the depreciated value, all claims from the affected Farrer residents would be assessed on their merits.

No claim would be black and white and most likely Evoenergy would pay beyond the amount covered by insurance, Mr Billing said.

Mr Billing also said Evoenergy had responded to a fault report in the area the night before the surge, but could not conclusively say if the issues were linked.

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