REGULATOR Ofgem has launched an "urgent" review into the response of energy network companies to Storm Arwen - as well as removing a compensation cap for those affected by power shortages.

A £700 cap on compensation has been lifted, allowing those affected to claim £70 for each 12-hour period they are left without power, after an initial £70 for the first 48 hours.

The regulator said its review will establish the facts about the response and if necessary it will pursue further enforcement action.

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Jonathan Brearley, Ofgem's chief executive, said: "We understand this is a really worrying time for people who are without heat and power as the severity of Storm Arwen has hit homes and businesses in the North of England and Scotland. The effects of Storm Arwen are still being felt with 10,500 homes still without power.

"We accept the network companies have been working in challenging conditions, but until every home in Britain has power restored, that relentless effort must continue.

"We are launching a review into how the storm has been handled. We have strict rules on how network companies need to operate in these circumstances and we will take action if needed."

He added: "I've launched an urgent review to see if there are things that the industry could learn from this response in order to improve our support to consumers in the future."

The review will focus on the role of the network companies in maintaining the resilience of the system and their emergency response, including their communications with customers.