Terence Flanagan (Dublin North East, Fine Gael)
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Question 243: To ask the Minister for Communications, Energy and Natural Resources his views on the ESB's recent price reductions; if it is allowed to penalise those who do not pay their bills by direct debit; and if he will make a statement on the matter. [7319/11]

Pat Rabbitte (Dublin South West, Labour)
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I have no statutory function in the setting of energy prices or payment methods, whether in the regulated or non-regulated sector. Responsibility for the regulation of the electricity and gas markets is a matter for the Commission for Energy Regulation (CER), which is an independent statutory body.

The electricity retail market was fully deregulated as of 4 April, with the entry of ESB Electric Ireland to domestic competition. Following deregulation, ESB Electric Ireland has introduced a range of new Price Plans, reflecting normal competitive practices in the deregulated energy market. I welcome the ESB's announcement of price cuts of up to 17% for electricity and gas customers. This is a positive example of competition at work in the market which should have good results for consumers. ESB Electric Ireland is responding to competitive pressure, while maintaining a balance between its business viability - last year over €20 million in bad debts was written off - and customers' needs. ESB Electric Ireland has a well established practice of agreeing payment plans with customers to facilitate them paying off their arrears over a period appropriate to their individual financial circumstances. ESB Electric Ireland makes c. 150,000 of these arrangements each year.

I have asked ESB to distinguish between those customers who will not pay and those in genuine trouble and to pay particular attention to the needs of customers with genuine payment problems and who want to avail of the price cuts and ESB are reviewing their payment plans to ascertain what options are available.

ESB Electric Ireland has also confirmed that customers in receipt of social welfare payments who may have arrears can register for the household budget price plan. This plan offers reductions on their electricity unit rates provided they sign up to having a minimum amount of €15 a week deducted at source from their social welfare payments via An Post's household budget scheme. The scheme is strongly recommended by the Money Advice and Budgeting Service, MABS, and the Society of St. Vincent de Paul. ESB Electric Ireland is incentivising its customers to participate in the scheme by means of its new household budget price plan offering.