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Dunham Massey farm calls for compensation from National Grid
6:00pm Thursday 12th September 2013 in News
THE owners of Red House Farm in Dunham Massey are calling for National Grid to compensate them for lost business while work was being carried out nearby.
Lewis Clare, partner at Red House Farm, said the farm lost £5,000 in profit between January and March this year when National Grid closed down Red House Lane to replace a gas mains.
The reason National Grid has not offered compensation is because the claim does not fit into the criteria set out by the Gas (Street Works) (Compensation of Small Businesses) Regulations 1996 – the loss of profit must exceed 2.5 per cent of annual turnover.
Lewis said: “While their work may not have affected our total losses per annum by the requisite percentage, it caused me to operate at a loss during my off peak season.
“£5,000 pays my annual rates bill, it’s three months of rent to me, yet I just have to absorb that cost while an institution the size of National Grid just shrugs and says sorry.”
He has described National Grid’s behaviour as ‘immoral’ and has written to David Cameron asking for the current ‘unfair and punitive’ legislation to be changed.
A spokesman for National Grid said: “National Grid works hard to make sure that businesses are affected as little as possible by essential work to renew gas mains.
“We have a scheme in place which compensates small businesses for loss of profit and this scheme has the approval of the body which regulates our industry, Ofgem.
“Under the terms of the scheme, Red House Farm does not qualify for a compensation payment but we are still in dialogue with the business owners to try to find a resolution to their issues.”
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