Pat Rabbitte (Dublin South West, Labour) | Oireachtas source

I thank the Deputy for allowing me to address the main issue she has raised. The regulation of the electricity and gas markets is a matter for the Commission for Energy Regulation, CER, an independent statutory body with no ministerial role or function in this matter. However, other than in vacant premises which account for approximately one third of disconnections, I am concerned about any level of disconnection to customers. The CER is a statutorily independent body established under the Electricity Regulation Act 1999 and has responsibility for overseeing the regulation of Ireland's electricity and gas sectors. It promotes competition in the electricity and natural gas markets in order that customers can ultimately benefit from competitive pressures and prices. It also protects the interests of customers, especially the disadvantaged and the elderly, by ensuring standards of services are set and codes of practice are in place to protect consumers. I am well aware that some consumers are having trouble meeting their electricity bills owing to challenges facing the economy at this time and the fact that gas and electricity prices are increasing as a result of a significant rise in the price of gas worldwide.

I had asked the regulator to work with all electricity and gas supply companies to implement initiatives to ensure disconnection for non-payment of accounts would not take place where customers were experiencing genuine financial hardship and had either entered into a payment plan agreement or had agreed to the installation of a pay-as-you-go meter, as appropriate. The code of practice with the regulator holds that if consumers install a pay-as-you-go meter or if they enter into a payment plan, they will not be disconnected. The meters are available, but we need to improve the rate of take-up.

The CER has introduced several initiatives in respect of a disconnections policy. These include updating the guidelines for the disconnections code of practice, reducing the costs and the allocation of the costs of disconnection and reconnection for domestic customers. Instead of the customer bearing the entire cost, these costs are now shared equally between the supplier and the customer. This is an interim measure effective until December this year. The regulator is also working with the energy supply industry on interim prepayment solutions and has consulted on the challenges of so-called debt hopping with the industry and other interest groups. These groups include the MABS, the Society of St. Vincent de Paul and so on.

In October 2011 the regulator introduced a process of debt flagging into the change of supplier processes. Debt flagging will encourage customers and suppliers to address arrears in an upfront manner and hence prevent the accumulation of further debt and possible disconnection in the future. The regulator has also proactively facilitated a pay-as-you-go metering system, also known as a prepayment meter, in the natural gas and electricity industries to allow customers to manage their bills more effectively. The pay-as-you-go metering system is being rolled out throughout the country by all suppliers. In addition to providing a useful budgeting tool for customers, suppliers are required to offer customers facing disconnection the option of a pay-as-you-go meter where this is suitable, instead of proceeding to disconnect the customer. In these circumstances the customer's outstanding debt is placed on the meter and repaid over time.

In late 2011 the regulator carried out an audit of the guidelines for the code of practice on disconnections to see if suppliers were in compliance. The audit ensured all suppliers had implemented the guidelines. In the case of all examined domestic customer disconnections, the suppliers had exceeded the regulator's requirements in terms of timing of communications to customers and the numbers of attempts made to engage with customers prior to disconnection.

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