Oireachtas Joint and Select Committees

Tuesday, 4 October 2022

Joint Oireachtas Committee on Climate Action

Energy Prices: Discussion

Mr. Pat Fenlon:

We will keep that under review. That is managed directly with the Society of St. Vincent de Paul and MABS. We will work directly with them to monitor how that fund is being drawn and we will review that as this winter progresses in particular.

As for the standing charge, to put it into context our standing charge is €277 per annum so it is about 15% of the total typical estimated annual bill in terms of the current price from 1 October. In supplying electricity there is a mixture of fixed costs, including some of the infrastructure costs, as well as costs in running the supply business. There are also variable costs which is purely the amount consumed. So there is a mix and there is always a balance between the best way to recover fixed costs versus variable costs. Our total cost that we recover through customers does not change. If one goes up, the other will go up by less. On a combined basis it does not change the amount in terms of the estimated annual bill. It does vary so if we reduce the standing charge, some customers will benefit for example people with holiday homes which is low usage. On the other hand other people, who have high volume consumption, particularly families, would pay more if we ended up putting up the unit rate and reducing the standing charge. There are balancing factors to consider what is the right mix and relative to the market, we have tended to be mid-range as regards of the standing charges that are currently out there in the marketplace.

I will turn to Mr. Vickers to answer the other two questions.

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