Direct property damage
Compensation you may be entitled to is offered for direct property damage and does not extend to cover consequential losses.
Consequential losses are losses that aren’t directly related to an unauthorised voltage variation, which includes business and food losses.
- Where direct property damage occurs, compensation will be offered for the repair or replacement value of an appliance
- Where replacement value is offered, we’ll offer like for like (market value) compensation
- Unlike an insurance company that offers new for old, we’ll pay for the value of the item at the time of the damage
How is compensation value worked out?
Appliances have an expected lifespan. We take the age of your appliance from the expected lifespan, to work out the remaining life span. We then use the value of a new replacement appliance and the remaining life span to work out the item’s value
Example: 4 year old fridge, with an expected lifespan of 12 years. It’s equivalent current replacement value is $900.
Want to know more about compensation available to you? Click here
Damage can occur to your appliances due to voltage variations and claims made for this damage will be assessed as per Electricity Industry Guideline: No 11, Voltage Variation Compensation.
As your electrical distributor, we are obligated to provide quality supply of electricity as per the Distribution Code. Quality supply means providing voltage within the levels set by the Essential Services Commission. Voltage variations can occur during:
- A power surge – rapid increase in voltage above the set levels
- A brown out – reduced voltage below the set levels
From time to time, the supply of electricity can be interrupted due to a range of causes, such as animals, weather, traffic accidents, etc, resulting in a power outage. Damage to your property due to power outages are typically not covered by the Electricity Industry Guideline: No 11, Voltage Variation Compensation.
If you’d like to know more about this, the Victorian Electricity Distributors have jointly created an Unplanned Power Outages Compensation Fact Sheet which explains the compensation process and how customer claims are assessed.
There may have been other circumstances that caused damage that you’d like to raise a claim for, such as accidental damage involving our employees or equipment.
These damages will be investigated by our claims team and where it’s appropriate, compensation will be offered.
As part of providing a reliable and stable electricity supply, CitiPower Powercor works hard to maintain and upgrade the network to better serve our customers. However, there are times when voltage variations or power outages can affect customers’ supply experience.
For these times, there are reasonable precautions that businesses can take to protect their plant and equipment, and to improve their ability to ride through such events.
Most common precautions include:
- Surge protectors
- Uninterruptible Power Supplies (UPS)
- Backup generators
We recommend you do a risk assessment and speak to a Registered Electrical Contractor (REC) about these precautions. Or in the case of Uninterruptable Power Supplies (UPS), contact a specialist IT service provider.
For a full list of recommended business precautions, click here to find out more.
In the case when damages aren’t covered by the Electricity Industry Guideline or compensation was denied after assessment, you can seek to claim damages from your insurance policy.
We can assist you by providing an insurance letter to help with your insurance claim. Choose ‘request an insurance letter’ on the next page and we’ll email you the letter within 5 business days.