Written answers

Tuesday, 12 April 2011

Department of Communications, Energy and Natural Resources

Electricity Disconnections

9:00 pm

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour)
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Question 252: To ask the Minister for Communications, Energy and Natural Resources if his attention has been drawn to the details of a recent electricity supply disconnection case (details supplied); and if he is satisfied with the current regulations allowing electricity suppliers such as the ESB disconnect personal customers from the supply network. [7626/11]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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I have no function in the matter of disconnections of customers of ESB or other energy suppliers. Nevertheless, it is the case that the increase in disconnections in the past 12 months is a matter of considerable concern for the Government, the Commission for Energy Regulation (CER), voluntary organisations and energy suppliers. The current economic climate is placing additional pressures on consumers and many consumers are experiencing problems meeting outgoings including energy costs. The primary responsibility to manage customer debt rests with the energy suppliers and the customer. The key message for all customers is to contact their suppliers to make arrangements before the situation gets to the point of disconnection.

The CER, which is a statutorily independent body that was established under the Electricity Regulation Act 1999, has responsibility for overseeing the regulation of Ireland's electricity and gas sectors. CER promotes competition in the electricity and natural gas markets so that customers can ultimately benefit from competitive pressures on prices. It protects the interests of final customers, especially the disadvantaged and the elderly, by ensuring that standards of services are set and codes of practice are in place to protect vulnerable users. As part of its customer protection remit, the CER took a number of initiatives in relation to disconnections policy during 2010. In November, changes were introduced to the allocation of costs of disconnections and reconnections for non-payment between the supplier and customer. Instead of the customer bearing the entire cost, these costs are now shared equally by the supplier. This is an interim measure and effective until December 2012. CER has also issued updated guidelines for the disconnections code of practice and reviewed the cost of disconnection and reconnection for domestic customers. These costs were reduced from €174 to €70 for electricity and from €123.48 to €61.74 for gas.

CER is also working with the energy supply industry on interim prepayment solutions and is also consulting with industry and other interest groups, such as the Money Advice and Budgeting Service and the Society of St. Vincent de Paul, on addressing the challenges of so-called debt hopping. The Commission has a statutory responsibility to provide a complaints resolution service to customers with an unresolved dispute with their supplier or network operator. An Energy Customers Team has been set up within the Commission to deal directly with customers who have complaints. CER also provides a dedicated Energy Customers website, www.energycustomers.ie, which provides consumer information on the electricity and gas market and, in particular, on how to engage with its complaints resolution service. I welcome the fact that CER is working with energy suppliers to ensure they take all reasonable steps to assist customers through this difficult period and that electricity and to provide that gas disconnections because of genuine inability to pay are minimised and only occur as a last resort after numerous steps have been taken by a supplier to try to prevent this happening.

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