Dáil debates

Thursday, 31 January 2013

Ceisteanna - Questions - Priority Questions

Gas and Electricity Disconnections

5:00 pm

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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To ask the Minister for Communications, Energy and Natural Resources the measures he will take to reduce the number of disconnections of services by gas and electricity companies in homes around the country; and if he will make a statement on the matter. [4891/13]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Responsibility for the regulation of the gas market, including disconnections, is a matter for the Commission for Energy Regulation, CER, which is an independent statutory regulator.


In line with the CER's code of practice on disconnection, electricity and gas suppliers must facilitate payment options or plans for domestic customers experiencing genuine hardship and, where appropriate, engage with a money adviser acting on behalf of the customer or a recognised charity. This must include offering the customer a prepayment meter. I understand that as of the end of 2012, over 105,000 pay-as-you-go gas and electricity meters have been installed. In addition, disconnections may not be initiated where a customer has entered into a payment plan with the supplier and is honouring that arrangement.


I welcome the fact that CER is working with energy suppliers to ensure that they take all reasonable steps to assist customers through this difficult period and that disconnections resulting from genuine inability to pay are minimised and only occur as a very last resort. Implementation of the measures set out in the Government's affordable energy strategy published last November is pivotal to protecting the interests of vulnerable customers and improving energy affordability.

Additional information not given on the floor of the House


In addition, the Government will continue to support the delivery of energy efficiency measures to vulnerable households in 2013. The better energy warmer homes scheme has been allocated Exchequer funding of €20 million for 2013, which is expected to result in upgrades in over 10,000 homes.

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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The issues in front of us include the doubling of disconnections and the significant issue of fuel poverty. The energy regulator increased the prices even though it would have had evidence that disconnections were being doubled. We need to look at its modus operandi. Gas installation is another issue facing us. Due to the economic downturn, people are unable to employ certified fitters and gas installers and are instead employing people with very little competence in the area. We have had numerous discussions with the Commission for Energy Regulation which has not appreciated the urgency of the issue at hand. Cowboys are doing work on gas installation, there seems to be a breakdown between the body regulating gas installers and the commission and nobody seems to be taking a hands-on approach regarding shoddy work being done. We have seen the doubling of disconnections, and the decision by the energy regulator to award price increases must be questioned. I do not think there is a genuine acceptance of the fuel poverty and the number of people who are not using their energy sources because of fuel poverty.

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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It is important to record that the number of electricity disconnections is down. The problem is in the gas area. The latest figures I have suggest that the increase is 64% year on year. It is very difficult to get figures that strip out vacant houses and seasonal lets. There is also an apparent tendency in some summer months to switch off gas. None of these factors denies the Deputy's point about the fact that fuel poverty exists and that there are households under pressure. This is why even though the number of pay-as-you-go meters has climbed, I would like to see them rise further.

The protocol we have put in place requires that where a pay-as-you-go meter is installed or where a payment plan is entered into, there can be no disconnection. Perhaps it ought to be better promoted. Some people have not got the message. A resort to the protocol would mean that any of the companies cannot wantonly disconnect gas supply and I hope to see more meters.

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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Companies can take out advertisements in newspapers but the socioeconomic groups we are talking about by and large do not access the media. Every public representative has people coming into their offices who cannot pay their bills and are in negotiations with charity organisations to see if there is any help they can give them. However, this only carries the issue on for another month or six weeks and the underlaying issue is not addressed. Companies must step up to the mark and acknowledge that there is a serious problem with a certain group of people that they must tackle. Rather than sending out aggressive people looking for money, they should send people who will negotiate on the behalf of the company and outline the plans. Putting a protocol up on a website and national media does not really reach the targeted people.

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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There is a great deal of validity in what the Deputy says. There are people who are unaware of the existence of the protocol to which I refer. Communicating to them can be a challenge. Some of the work done by some of the charity organisations in this regard is very significant. These organisations include the Society of St. Vincent de Paul and State organisations like the money advice and budgeting service. I would like to take this and every opportunity to advise people to enter into a payment plan with the supplying company or install a pay-as-you-go meter to avoid circumstances where there is disconnection, even for 24 hours.