Oireachtas Joint and Select Committees

Wednesday, 11 December 2013

Committee on Transport and Communications: Select Sub-Committee on Transport, Tourism and Sport

Rationale for Sanctioning Energy Price Increases: Discussion with Commission for Energy Regulation

2:40 pm

Mr. Paul McGowan:

I might address some of the other questions. The key point on the pay-as-you-go option is that in the case of financial hardship the cost of the meter is socialised, whereas, where a choice is involved the company offering it needs to recover the cost.

The process for switching in Ireland is straightforward and it is free. One exercises one’s choice freely and there is no prohibition on people re-exercising the choice to switch to another supplier. However, certain suppliers when they sign up customers might have reached a certain deal with them and there might be a termination provision in the contract but, generally speaking and all things being equal, if it is a straightforward domestic supply contract without any of those provisions then customers are free to switch at any time they choose.

We have addressed the question on the cost of pay-as-you-go meters. Essentially, where there is financial hardship the cost is socialised and recovered through the market but where financial hardship is not an issue and the meters are offered by a commercial entity the cost must be recovered by it through its tariffs.

Deputy Flanagan also inquired about pay-as-you-go meters. It is important to bear in mind that if somebody is on a pay-as-you-go meter and they do not make payments then their electricity could be cut off.

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