On October 18, 2026, a suspected installation error on a high-voltage power line triggered a widespread power outage in Schleswig-Holstein, accompanied by dangerous surges in voltage. Up to 40,000 households across five districts were affected, resulting in significant damage to heating systems, electrical appliances, and public infrastructure. By November 4, the grid operator SH Netz had received approximately 5,000 claims for damages, totaling 16 million euros. However, it remains unclear what portion of these losses will actually be covered. Particularly problematic are the statutory liability limits and the discrepancy between the current (depreciated) value of items and the cost of replacing them.
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Faulty connection clamp installed as early as 2023
The technical investigation points to the Itzehoe area. There, a connection clamp on a 110-kilovolt overhead line failed; it appears the component was not suited to the diameter of the conductor. A service provider had likely installed the part during line maintenance work back in 2023. The failure of the connection triggered a ground fault and several automatic protective shutdowns. This caused such a significant shift in the grid structure that exceptional overvoltages occurred.
Particularly noteworthy, however, are the findings from subsequent inspections. SH Netz discovered additional incorrectly installed clamps within the section of the line that had been upgraded at the time. These have since been replaced. Furthermore, the grid operator is using drones and thermal imaging technology to inspect other high-voltage connections. It remains unclear why the protection systems failed to contain these dangerous voltage levels within the high-voltage grid. There is no evidence to suggest that sabotage or an unusual surge in renewable energy feed-in was the cause.
Damage extends to sewage treatment plants and senior housing
The consequences of the power outage went far beyond destroyed household appliances. In Schafstedt, the heating systems in all three senior housing complexes—comprising a total of 20 units—failed, requiring the temporary provision of portable heaters for the residents. At the state-run accommodation facility in Seeth, plans were even made to relocate 450 residents because the heating and sewage systems were no longer functioning properly.
Public infrastructure also sustained significant damage. In Bokhorst, the sewage treatment plant failed, while the waterworks in Linden could only operate at limited capacity for a time. In Friedrichstadt, a power surge damaged equipment including the heating system at the town hall. Furthermore, individuals reliant on oxygen or respiratory support equipment required emergency power supplied by the fire department during the outage. Affected businesses also faced repair costs and additional losses due to operational downtime.
16 million euros in claims—no definitive total figure yet
The process of settling these claims has reached an extraordinary scale. Out of approximately 5,000 reports, about 800 involve claims exceeding 5,000 euros each, with around 300 claimants reporting damages of over 10,000 euros. SH Netz is prioritizing these cases. The insurance provider has already reached out to some of those most severely affected. However, there is still no definitive information regarding when the entire claims settlement process will be concluded.
The reported 16 million euros equates to an average of 3,200 euros per claim. This average, however, says little about the actual distribution; some individual claims reach five-figure sums, while others are significantly lower. Moreover, some defects may only become apparent later—for instance, damaged appliances in vacation homes that are unoccupied for periods of time may go unnoticed initially. Therefore, the final extent of the damage cannot yet be determined.
Statutory liability limits can complicate claims for compensation.
When it comes to compensation, the specific legal basis is crucial. Under Section 18 of the Low-Voltage Connection Ordinance (Niederspannungsanschlussverordnung), liability for property damage caused by simple negligence is generally capped at 5,000 euros per connection user. However, this limit does not automatically apply to other legal grounds for liability. As early as 2014, the Federal Court of Justice ruled that excessive mains voltage can constitute a defect in the product—electricity. Consequently, grid operators may be held liable under the Product Liability Act (Produkthaftungsgesetz) even without proof of fault.
Nevertheless, when pursuing this statutory claim, the affected party must generally bear the first 500 euros of their property damage themselves. SH Netz assesses larger private losses—with a current value of 5,500 euros or more—on this basis. However, this does not represent a universal statutory minimum threshold for damages. The situation remains particularly difficult for businesses, as the Product Liability Act does not cover standard commercial property damage in the same way. In such cases, other potential liability claims must be examined.
Actual cash value instead of replacement cost increases financial burden
For many households, the valuation of damaged equipment presents an additional challenge. In its current claims settlement process, SH Netz’s insurance provider bases payouts on the “actual cash value” (depreciated value) rather than the cost of a new replacement. Consequently, an older heat pump may be valued at significantly less than the cost of purchasing a new, equivalent unit. Similar discrepancies may arise in the case of photovoltaic systems. Furthermore, the state parliament has discussed potential warranty issues that could emerge when replacing damaged control boards. Whether such consequential costs are eligible for compensation depends on the specific circumstances of each case.
In response, SH Netz is planning to establish a voluntary hardship fund, with a budget in the low single-digit millions; however, the specific terms and conditions have yet to be finalized. While state policymakers are pushing for more extensive compensation, many affected individuals are in urgent need of functional heating systems and replacement equipment. Those affected should therefore document all damages, secure repair reports, and—for the time being—retain any defective components. Although power supply was restored two weeks after the grid disturbance, the financial repercussions are far from resolved.
Author: Blackout News
Sources: NDR (04.11.26) – ntv (04.11.26) – HanseWerk / SH Netz (28.10.26) – NDR (28.10.26)