Éamon Ó Cuív (Galway West, Fianna Fail)
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I thank the Minister for attending the House personally and I know he has made a significant effort to be here.

It has been decided that bills of under two units per day, which I understand from the ESB is equivalent to having a fridge freezer on all the time, or using a cooking plate for 20 minutes, or having four 60W bulbs on for three hours, will be charged at a higher standing charge. This is focused at vacant dwellings and holiday homes that are vacant for most of the year. At first glance, one might say "Fair enough, if you can afford to have a vacant home", but there are many reasons why houses are vacant and why somebody may wish to leave a fridge freezer on. People may have had to go away to get work, for example.

It is not as if there was not an alternative to what is being proposed. I understand the ESB is stating that the saving would be €8.5 million for 170,000 customers. It is hard to see how that saving would be made, but it is what the ESB states. That means there is a saving of €50 per customer per annum. In some case, however, that can rise to an extra charge of €150 per customer. What justification did the ESB give for this? It said it is more expensive to read meters, in addition to which the company must send out bills and administer customer services. It seems rather strange, however, that there would be customers services for vacant houses.

I hope the Minister will take up this matter with the ESB and tell the company that if houses are vacant for large parts of the year, customers could perhaps agree to be billed once or twice a year. In that way savings could be made with fewer meter readings and bills, and all the other excuses the ESB is using for this charge. What is the point in sending out a bill for less than two units a day?

The Minister should tell the ESB that there is another way of solving this problem, which is very simple. People with properties lying vacant for extended periods should notify the ESB so that the meter will not be read and they will not get a bi-monthly bill.

Jerry Buttimer (Cork South Central, Fine Gael)
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I thank the Minister for making an effort to be here. The ESB is increasing the standing charge for customers who use less than two units of electricity per day. According to the ESB's own figures, this will amount to €9.45 in a two-month bill or €56 over an entire year's billing period. It mainly concerns vacant dwellings, including holiday homes. One unit of electricity amounts to using an electric shower for ten minutes, operating a washing machine for 90 minutes, or watching a 28-inch television for nine hours. Most of us use 14 units of electricity per day and will thankfully be exempt from the standing charge.

To be fair, the Minister has said that people in receipt of a free electricity allowance will be exempt, as will those on an ESB household budget plan or with pay-as-you-go meters. It is also important to exempt elderly people who may have vacated their dwellings to live in nursing homes, may be ill in hospital or may be living with a son or daughter.

I am amused by the ESB stating the standing charge is for administrative costs because the company has changed its meter-reading process, certainly in Cork city. The ESB is increasingly moving away from meter reading, so I would like to hear an explanation for that. The ESB should clearly set out which customers will be affected by this increase. I hope the Minister will agree that we must protect low-income households from this increase, and the elderly in particular.

The Minister's role is crucial in this matter. The ESB must answer to its shareholders and explain this decision fully. If we look closely at those who should be offered exemptions from this increase, I think we will find that the net will get bigger.

Peter Mathews (Dublin South, Fine Gael)
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I call the Minister, Deputy Rabbitte.

Pat Rabbitte (Dublin South West, Labour)
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May I say how well the Chair befits you?

Jerry Buttimer (Cork South Central, Fine Gael)
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He is in training.

Pat Rabbitte (Dublin South West, Labour)
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I would like to draw the attention of Deputies Ó Cuív and Buttimer to the fact that responsibility for the regulation of the electricity and gas markets is a matter for the Commission for Energy Regulation, which is an independent statutory body.

The residential electricity market has changed dramatically over the past two years with the introduction of competition. Suppliers are required to respond to competitive pressure while at the same time maintaining a balance between business viability and customers' needs. Prices in the electricity retail market have been fully deregulated since April 2011. Price setting by electricity suppliers, including Electric Ireland, is a commercial and operational matter for the companies concerned.

The regulator was established in 1999 to regulate the electricity sector in Ireland. In 2002, its remit was extended to cover the natural gas market. The regulator is independent of all operators in the market and acts in the best interest of energy customers in Ireland by working to ensure that consumers benefit from regulation and the introduction of competition in energy markets.

An electricity supplier can increase or decrease the rates charged to customers in line with what has been signed up to in the contract. This may include increasing or decreasing the unit rate, the standing charge, or any additional charges on bills.

Deregulation enables business and domestic customers to engage proactively with suppliers and seek better value offers from them and-or switch to other suppliers with lower prices. Since deregulation, Ireland has had some of the highest switching rates in Europe. Switching to an alternative supplier can deliver immediate benefits to consumers. The process is quick, easy and capable of delivering real savings to every household and business.

The background to this particular matter is that Electric Ireland, the ESB's customer supply business, introduced a low-user standing charge on 1 February 2012. The charge applies to that minority of customers who use an average of two units, 2 kW, or less per day in any billing period, which is typically 61 days. Standing charges will be increased by 15.5 cent, including VAT, per day or €9.45, including VAT, per two-monthly bill. Based on analysis of last year's consumption, Electric Ireland estimates between 130,000 to 175,000 customers, 10% to 13% of its existing customer base, may be affected. The increased standing charge will not apply to customers who receive a free electricity allowance or those on household budget plans and pay-as-you-go meters.

I would have been very concerned if it were the case that low-income households and vulnerable customers were to be affected by the standing charge increase. I can tell Deputy Buttimer I have been assured by Electric Ireland that such customers will not be affected.

Peter Mathews (Dublin South, Fine Gael)
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I thank the Minister. His response was balanced and beautifully delivered.

Éamon Ó Cuív (Galway West, Fianna Fail)
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The idea of a low-usage Electric Ireland customer changing to a new supplier is not a runner. Is the Minister willing to suggest to the ESB that there are many other ways of saving the same amount of money without pegging it on the customer? The simplest answers to this problem are to cut down on administration and get the customers in question to accept electronic billing. There is no point in reading a meter that has no charges on it. The ESB has known for years which low-use customers, such as those with holiday homes, are involved because it has an averaging system to anticipate usage. This charge and the reasons given by the ESB for it are unjustified. Will the Minister ask the ESB to examine alternative ways to make savings which, with the co-operation of the customer, would cut down on administrative and meter-reading costs?

Jerry Buttimer (Cork South Central, Fine Gael)
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I thank the Minister for his reply and his commitment that low-income households and vulnerable customers would not be affected. The ESB is trying to cod us all. It is discouraging energy efficiency as this charge will penalise low energy usage which is contrary to the policy pursued by the Government and everyone else.

There is a need to monitor the effect of the low-usage charge. I hope the Minister, with the ESB, will assess who the charge affects and review the category of users who have exemptions with the need to re-examine this decision in the next several months. I believe the ESB has changed its meter-reading process - it certainly has in Cork city - and is not reading them as often as it claims.

I welcome the Minister's commitment in his reply that low-income households and vulnerable customers would not be affected. I hope the ESB will review this charge.

Pat Rabbitte (Dublin South West, Labour)
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I was merely explaining the background of the impact of deregulation to Deputy Ó Cuív, which he understands well. I was not suggesting the increase in the charge in the particular case of customers who use two units of electricity per day would cause them to switch supplier. Rather I was pointing out that since deregulation there has been considerable switching.

Éamon Ó Cuív (Galway West, Fianna Fail)
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That is the usual padding they put in the answers. When I was a Minister I used to strip all that stuff out myself.

Pat Rabbitte (Dublin South West, Labour)
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I am reluctant to get into the business of telling the ESB how to do its job, however.

Éamon Ó Cuív (Galway West, Fianna Fail)
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The Minister could ask them.

Pat Rabbitte (Dublin South West, Labour)
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I heard the Deputy's points about changing the reading of meters in question and a once-off annual billing.

There has, however, been some misconception in the public domain about this charge. Conclusions were jumped to that this was a charge on the poor. It is not a charge on the poor.

Jerry Buttimer (Cork South Central, Fine Gael)
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Hear, hear.

Pat Rabbitte (Dublin South West, Labour)
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This is a charge on holiday homes or premises vacated, for whatever reason, in the main. I have already relayed to the House the assurances given to me that those customers on a electricity allowance or on household budget packages will not be affected by this charge. I want to assure Deputy Buttimer that this is the information I have.

If Deputy Ó Cuív is correct that his is a more common sense approach to invigilating this and his billing system would make more sense, I am more than happy to bring it to the attention of the ESB.

Éamon Ó Cuív (Galway West, Fianna Fail)
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I do not want the Minister to go any further than that. I appreciate his role and I would be grateful if he just passed on those suggestions.