Seanad debates
Wednesday, 21 February 2024
An tOrd Gnó - Order of Business
10:30 am
Lynn Boylan (Sinn Fein) | Oireachtas source
I raise the issue of customers in electricity arrears. Yesterday, the Commission for Regulation of Utilities, CRU, released the latest round of quarterly figures, which show that just under 250,000 households are in arrears on their electricity bills and 1,385 households were disconnected for non-payment in the past year. While the drop in the number of customers in arrears in the latest quarter is welcome, the reality is more households are in arrears this year than at the same time last year. A clear pattern is also developing whereby the numbers decrease in the winter as the energy credits kick in and tick back up when the credit payments end. The problem is the numbers are not falling back to the level they were previously, which means we are seeing a year-on-year increase.
It is clear that households are being left behind. Despite falling prices, the only way to sustainably address energy poverty and arrears is through reform of the CRU. The regulator currently lacks the necessary powers to hold the significantly profitable energy companies to account. It needs the same oversight of hedging practices as its counterparts in the rest of the EU. It needs to be able to regulate standing charges because, as we know, energy companies are using those charges to hike up electricity bills. It is not just Sinn Féin saying the regulator needs more powers. The chair of the Consumers Association of Ireland has also expressed concern that the regulator does not have the powers to adequately protect customers.
In addition, the Society of St. Vincent de Paul and Social Justice Ireland have called for electricity and gas companies to introduce fair repayment plans for householders. This is necessary to enable people to manage their bills and exit effectively from being in arrears, instead of getting deeper into debt. It is especially important for the one in five customers currently in arrears. Another factor is that there is no credit for gas customers, which means they are all the more dependent on the regulator being given greater powers to oversee the hedging practices of the gas companies and ensure there is no price gouging by those gas suppliers.
It is concerning that we are seeing an increase in the number of people in arrears compared with this time last year. I ask for a debate with the Minister for the Environment, Climate and Communications on the need for the regulator have the necessary teeth to regulate the market.
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