Oireachtas Joint and Select Committees

Tuesday, 31 January 2023

Joint Oireachtas Committee on Climate Action

Engagement with the Commission for Regulation of Utilities

Ms Karen Trant:

The Deputy is correct that it is Government policy to consider extending the definition of "vulnerable customer" for those who are in financial circumstances that could lead to energy poverty. It is a complex area and we have communicated with suppliers and the Department that this needs careful consideration. In the context of the definition, people who would be in fuel poverty are those who spend 10% or more on their fuel bill. Many people fall into that category right now. We need to give it time and consideration. We have engaged with suppliers to look at extending the moratorium. Some of the feedback we are getting is that during the Covid crisis customers disengaged when the moratorium took place, which leads, ultimately, to more debt for those who are probably not in the best of circumstances. We want to try to ensure they are engaging with their supplier.

There are a number of measures in place to protect those customers. Even though the moratorium is due to end on 28 February, there is a process that takes nearly six weeks before a person would be disconnected in any event, which would take us into early summer. Customers can engage with their supplier and we have set a 24-month minimum period for them to pay back any debt. We have told suppliers it has to be a customer-led approach. The customers dictate what they can pay; it is not a rough calculation done by the supplier. We are monitoring that. Disconnections are still very low. At the beginning of 2021, there were in the region of 2,000 disconnections. In 2011, there were 17,000 disconnections. I acknowledge that was a particular time. The measures we are putting in place are having an effect, as is the Government credit.

The number of disconnections is low. Debt is also continuing to decrease. Engagement is still taking place with customers. Customers are more engaged in terms of asking questions about the credit, for example, when will they see it.

We will continue to work with suppliers. They will push back and say that they have done a great deal and that they are businesses. The more we push them, the greater the risk of supplier-of-last resort events happening because smaller suppliers will feel the squeeze. They cannot deal with that level of debt on their books in the long term. It is a complex issue. We will continue working with the suppliers and push them as much as we can, but-----

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