Oireachtas Joint and Select Committees

Wednesday, 25 February 2015

Joint Oireachtas Committee on Transport and Communications

Energy Prices: Discussion

9:30 am

Mr. Stephen Wheeler:

In regard to reconnection policies, everyone’s objective is not to disconnect any customers. In the past year the Deputy may have seen the work that went on behind the energy engage code which is a commitment by all suppliers that we will not disconnect any engaging customers. We will work with customers, whether through payment plans, or pay as you go metres. We will consider their needs and work with them. One challenge is that not everyone is engaging. That becomes a problem and unfortunately disconnections do happen. To be clear, there is no benefit to anyone in this room today in disconnecting a customer. The Commission for Energy Regulation, CER, stipulated 18 or 24 months ago that each energy company, or supplier, pay half the reconnection fee. Disconnections usually happen because of debt and that is why people do not engage. The supplier is losing the debt and has to pay a reconnection fee. It makes no sense to disconnect.

I am not aware of the punitive fee after 18 months because I am not aware of that policy within SSE Airtricity. I will not speak on behalf of my colleagues. I am happy to come back to confirm that is not the case at SSE Airtricity.

On the point of energy efficiency and paying more, this comes back to how one breaks down energy costs. Wholesale prices are less than 30%. There are fixed charges, such as network charges which have gone up this year. We need to be mindful that although consumption is a key driver of one’s energy cost there are fixed costs associated with that. Nothing can be done in that regard, they are network and other associated costs. They do not affect the kilowatt hour.

With regard to energy certificates, it is very important to step back when we look at the energy efficiency targets. We have signed up to a significant obligation which will come at significant cost to all our consumers. This is a competitive market and it is in everyone’s interest, and ultimately the consumer’s interest, that suppliers pay the most competitive price they can for certificates because that cost will be passed to the customers. I cannot comment on any other supplier’s practices. The Deputy asked a detailed question about the number of certificates and how much we paid. I will be happy to furnish that information after this meeting. I cannot stress enough the point that this is a consumer cost and we need to do whatever is in our capability to keep that cost to a minimum.

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