Diagnosis charge

My iMac had been suffering power problems. I talked to Apple, they told me that the machine might be covered under the extended warranty for video and power issues and that I should take the machine to my local store.
Unfortunately, according to Apple, the part that needed replacing (the PSU) was not covered under its extended warranty. I spoke to the store today and told them that I would collect the machine in its failed state.
Now here's the annoying part: I took the iMac to the store because I was led to believe that it would be fixed under warranty -- I spoke to an Apple representative who agreed that the iMac was likely to be covered, and they gave me a reference number. But since, as it turns out, the machine is not covered, the store wants to charge me £40 for the diagnosis!
I work with computers a lot, and I tend to know the reasons why they fail. Hence, I knew from day one that the problem was likely due to the PSU. I told the Apple representative that the problem was likely caused by a faulty PSU. I told the same thing to the guy at the store. If I were to part with the £40, I'd be paying for something I already knew.
I'm yet to collect the iMac. Personally, I don't feel like I should pay the fee as it was only today that I was told that there would be a charge -- and I have declined the repair.
Is this the usual manner of business? If I had taken the machine directly to Apple, would they have charged me too?

A £40 diagnose must have resulted in a specific part number indicating repair costs of your Mac. The problem might be caused by [this|http://www.applemacparts.co.uk/store/advancedsearchresult.php?keywords=uk+PSU&x=9&y=7] Power Supply Unit.
Was testing a different power cable part of the diagnose? iMac diagnostic LED's [here|http://docs.info.apple.com/article.html?artnum=86815] also the start up sequence [here|http://docs.info.apple.com/article.html?artnum=303363]. And depending on the generation of your Mac check [here|http://www.info.apple.com/kbnum/n301733].
Hope it helps, I'm no expert however.

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