Energy firm damages claim row

A cafe owner whose profits plummeted after gas works disrupted his trade has been refused compensation - because his claim was "too small".

Energy company National Grid has refused to reimburse Michael Olsen, the owner of the Sunshine and Ravioli café in Twickenham, because he only asked for £2,500.

It will only consider claims which represent at least 2.5 per cent of a business's yearly turnover.

The pavement outside the café in St Margaret's Road was dug up for six months this year.

Mr Olsen, 62, who bought the business in 2005, said: "I pay for a licence to put two tables outside the café but because the pavement was being dug up I couldn't use them. The extra space counts for about 20 per cent of my seating and my takings went down quite a bit."

He was angered by National Grid's refusal to meet his claim. "It's not a huge amount but for a small business it represents a substantial part of my annual profits," said Mr Olsen.

"What they are saying is that a minimum level needs to be set to stop small, irritating claims. I can kind of understand that but on the other hand why should anybody lose out because National Grid has stuffed up the road?

"If it's a small business compensation scheme then small businesses should be able to claim. It's tough enough as a small business to make money."

Other traders in the street have been told they are not entitled to a reduction in their business rates because of the disruption.

Simon Chapman, chairman of the St Margaret's Traders Association, said: "We all suffered a slump in business because parking bays were suspended and the road was unattractive and noisy.

"But when we sent the forms to the Valuation Office Agency they refused us because they were submitted after the works had finished." Vincent Cable, Liberal Democrat MP for Twickenham, said: "This whole job was a mess, taking many months to complete, and there was vast disruption to trade. To be told now there is no compensation is adding insult to injury."

A National Grid spokeswoman said: "We have to abide by statutory guidelines which state that compensation claims must be at least 2.5 per cent of annual turnover.

"We appreciate that for some this is a lot of money to lose but we're a regulated business so if we make an exception for one person it opens the floodgates for everybody else. "

A Valuation Office Agency spokesman said: "Rating legislation requires timely notification if the VOA is to take into account any works which will affect trade. However, we have asked businesses in St Margaret's to provide evidence that their trade has been disrupted by these works and on receipt of this information we will review their rates and, if necessary, adjust them."