Power regulator Ofgem has launched an "urgent" review into the response of energy network companies to Storm Arwen, which has left some people without power for a week so far.
The maximum £700 cap on compensation has also been lifted, which will allow those affected by the storm to claim £70 for each 12-hour period they are left without power, after an initial £70 for the first 48 hours.
It is now a week since the high winds of Storm Arwen battered the North East and left 240,000 people without electricity in one of the worst storms in memory.
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Yet thousands of people remain in freezing homes unable to heat them as they face a seventh day without electricity.
Rural parts of the North East are the worst hit, with snow falling and temperatures plummeting to -2C.
On Thursday, a major incident was declared in County Durham and Durham County Council have said the army have been drafted in as power companies struggled to get the lights - and the heating - back on.
A major incident was also declared in Northumberland on Friday.
Ofgem said that around 10,500 people are still without power in some parts of Scotland as well as our region.
The regulator said its review will establish the facts about the response and if necessary it will pursue further enforcement action.
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.
"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."
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.
Many in rural Northumberland and County Durham have complained about the poor communication from Northern Powergrid, with reports of false information on when power would be back on and long waiting times on the phone.
Northern Powergrid, the electricity distribution network operator for the North East, Yorkshire and northern Lincolnshire, said power has been restored to 234,000 others since Storm Arwen swept across the country, with another 6000 still off the grid by Thursday, December 2.
