On Thu, 6 Mar 2008 01:29:57 -0000,it is alleged that "R. Mark Clayton" spake thusly in uk.d-i-y:
>> >>> Mayhem as neighbours' digiboxes all burst into flames at once due to >>> power surge
>>> Last updated at 11:48am on 5th March 2008
>>>
>>> A massive power surge triggered a number of TV digiboxes to burst into
>>> flames on one street as firefighters dashed from house to house. The
>>> set-top boxes began spitting sparks and residents living on the street
>>> described the road as being "lit up like Blackpool Pier".
>>>
>
>
>Sounds like a not unusual (if overhyped report of a) phase to neutral fault.
>415V appears on the mains input, to the frequent dismay of switch mode power
>supplies etc.
>
What immediately occurred to me was an open circuit neutral somewhere, causing the neutral point to wander around the 0v point, causing the effects noted: "The power was so strong one minute the houses were lit up like Blackpool Pier and the next they were dim like candle light."
As you mentioned, SMPS units hate this. I'd be surprised if a few computers etc hadn't died also.
The 'only affecting sky digiboxes' part is probably part of the Daily Mail's usual conspiracy theories and generall scaremongering.