Written answers

Wednesday, 20 October 2010

Department of Communications, Energy and Natural Resources

Electricity and Gas Disconnections

9:00 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Question 61: To ask the Minister for Communications, Energy and Natural Resources his views on the numbers of gas and electricity disconnections that have taken place to date in 2010; his further views on a zero disconnection policy; and if he will make a statement on the matter. [37804/10]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I am deeply concerned at the number of electricity and gas disconnections that have taken place in 2010.

All options to improve the situation need to be explored and I welcome the fact that the Commission for Energy Regulation (CER) has agreed to review regulatory policy on disconnections. This review will specifically look at how the costs of disconnection are allocated across business and the domestic customer.

While the review is ongoing, the CER has instructed ESB Networks to roll out sufficient pre-payment meters to electricity customers at risk of disconnection.

In the gas market a supplier may request that a pre-payment meter is installed for free for customers experiencing genuine financial hardship. The cost of these pre-payment meters is currently recovered through gas network charges, which are applied across all customers. Given current circumstances, the CER has relaxed the definition of 'financial hardship' to enable additional meters to be allocated free of charge to customers.

All energy suppliers have put in place Codes of Practice setting out the steps to be taken before initiating a disconnection. These include working with the customer to put in place a payment plan and liaising with third parties who may be acting on the customer's behalf. These include the Money Advice and Budgeting Service (MABS) and the Society of Saint Vincent de Paul.

Suppliers are also required to give a customer 7 days notice in writing, informing the customer of disconnection/reconnection charges and providing contact details to make payment arrangements.

There are other strong protections in place for particularly vulnerable customers. For example, suppliers are prohibited from disconnecting elderly customers in the winter months or those dependent on medical devices that use electricity.

There are also significant programmes to support those in energy poverty, including the electricity and gas allowances that are available under the Household Benefits package.

The key message for people who are in genuine difficulty with their energy bills is to make immediate contact with their supplier. Suppliers will work with customers to agree a payment plan before the unpaid bills begin to accumulate and therefore well before it gets to the point of disconnection.

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