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Chippy owner facing losses of £10,000 due to gas outage

Chippy owner facing losses of £10,000 due to gas outage

Wednesday 11 October 2023

Chippy owner facing losses of £10,000 due to gas outage

Wednesday 11 October 2023


The owner of a popular local chippy facing losses of £10,000 due to the ongoing gas outage says he is considering legal action after being told there'd be no compensation.

Jersey's gas network has been down since Saturday, affecting more than 4,000 customers and around 400 businesses – including many restaurants who have had to cancel or scale back their bookings.

The process to restore the island's gas supply started today when the plant was switched on for the first time since the failure, but Island Energy said reconnection won't begin until it has successfully run for 24 hours. 

After hopes it would be restored by Tuesday were dashed, all domestic and commercial customers are now expected to have their gas supply returned by Sunday – eight days after the initial outage.

Gas shutdown is "just another hit"

Among the businesses badly affected is Entwistles Fish and Chip Shop – a staple of Gorey Village for almost half a century – which has been run by Jon De Gruchy and his wife Monika for the past eight years.

"We're already struggling," Mr De Gruchy told Express, explaining how the cost of living crisis and rising prices have hit fish and chip shops particularly hard as the ongoing war in Ukraine continues to push up oil prices exponentially. 

"This [gas outage] is just another hit," he added.

Communication has been "an absolute nightmare"

Mr De Gruchy said: "We understand that they have to be careful turning stuff back on, but it's the communication that's been an absolute nightmare.

"It's very frustrating that nobody seems to know what's going on." 

The Entwistles owner explained how he had to physically go to Island Energy's offices to get any information.

"We've been left hanging out to dry"

"All people want is an explanation," he said. "We're just sitting here watching our business and money disappear.

"We've been left hanging out to dry. Island Energy haven't done enough."

Mr De Gruchy said that Entwistles' losses due to the gas outage were pushing £10,000 after having to throw away almost £2,000 worth of fresh produce and missing out on around £8,000 in sales due to being closed since Saturday morning.

"Friday night is our busiest night, so if the gas isn't back on by then we'll lose out on another £3,500 to £4,000 in sales," he added.

Monika_and_Jon_.jpeg

Pictured: Monika and Jon De Gruchy, the owners of Entwistles fish and chip shop. 

Mr De Gruchy continued: "I have a lot of friends with restaurants and everyone is in the same boat. We're all losing large amounts of money."

He added that some restaurants were facing having to cancel large party bookings which would see them lose almost £1,000 in sales.

"We're not happy," Mr De Gruchy said.

Calls for compensation

Mr De Gruchy is among those who believe those who have lost out should be entitled to compensation. However, when he asked, the fish and chip shop owner said Island Energy had informed him that he wouldn't be getting any.

As a private company, Island Energy is unregulated, CEO Jo Cox confirmed to Express and it is not obliged to provide compensation.

Jo Cox CEO Islands Energy Group IEG.jpg

Pictured: Island Energy Group CEO Jo Cox said the utility company may considered compensation on a "case-by-case" basis.

“Within our terms and conditions for domestic customers, it’s clear that compensation isn't part of those terms and conditions," she said, but noted that compensation may be considered "on a case-by-case basis".

Consumer Council Chair Carl Walker said that Island Energy should at least replicate the compensation scheme in place in the UK where customers of Ofgem-regulated entities whose supply is interrupted unexpectedly are entitled to £60 for the first 24 hours. This amount then increases with time.

"We'll have to start thinking about legal action"

Mr De Gruchy said he was considering what to do next amid inaction from Island Energy.

"Small businesses are dying," said Mr De Gruchy. "We'll have to start thinking about legal action."

He is not the only one to have criticised Island Energy's communications.

Dominic Jones, which runs the business behind the Oyster Box and Crab Shack, slammed the lack of regular updates on X (formerly Twitter) when the outage first occurred over the weekend.

He also queried why, in one update, Island Energy said its engineers would only be working until 19:00 and then starting at 08:00 the next day.

"Where is the [Government] leadership on this?"

Deputy Lyndon Farnham, meanwhile, criticised the Government for its apparent lack of action.

"Where is the leadership on this, what exactly is going on, when and how will it be resolved, what is the plan to help the people and the businesses affected?" he wrote on X.

Home Affairs Minister Helen Miles later issued a statement – containing an error about reconnection timings which later had to be corrected – saying that Ministers and officials were disappointed it had taken so long to resolve the issue.

She went on to remind islanders that those without access to hot water as a result of the outage would be able to use the hot shower facilities at Les Quennevais.

Deputy Miles urged employers across the island to "continue to provide support" for those without access to hot water facilities, and asked islanders to continue checking in on family members and neighbours who may also be without.

READ MORE...

Households facing waits of up to five days for gas reconnection

New target for beginning of gas network restoration

Calls for compensation and nationalisation as gas woe continues

Island Energy "not in a position" to bring back gas supply tomorrow

FOCUS: Island Energy's CEO on what went wrong...and what happens next

Q&A: Thousands to be without gas for "several days" as repairs continue

Gas supply shutdown hits homes and businesses across the island

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