Michael Kitt (Galway East, Fianna Fail)
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Question 138: To ask the Minister for Communications, Energy and Natural Resources the reason the cost of re-connections for electricity has increased, especially after two years of disconnection; if there is a new policy on quoting these figures; and if he will make a statement on the matter. [20120/11]

Pat Rabbitte (Dublin South West, Labour)
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I have no function in the matter of disconnections of electricity customers regardless of the supply company involved. In addition, responsibility for the regulation of reconnection fees is a matter for the Commission for Energy Regulation (CER), which is an independent statutory body, with no Ministerial role or function in this matter.

It is nevertheless the case that the increase in disconnections in the past twelve months is a matter of considerable concern for the Government, the 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, a statutorily independent body 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, and also 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 both 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. In December 2010 these costs were reduced from €174 to €70 for electricity and from €123.48 to €61.74 for gas, effective from January 2011.

However, when a customer is disconnected for over six months ESB Networks also requires a certificate from a registered electrician to ensure the safety of reconnection. If a dwelling is disconnected from the electricity supply for more than two years the Meter Point Reference Number (MPRN) is deregistered. After two years therefore, residents of such dwellings would have to apply for a new connection instead of reconnection. In 2011 new connection fees are €1,795 (including VAT) for a standard connection to a single house (urban or rural) that is not part of a multi-unit residential or mixed development. I have no function in the matter of connection or reconnection fees which are regulated by the CER.

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 at 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 that they take all reasonable steps to assist customers through this difficult period and that electricity and gas disconnections because of genuine inability to pay are minimised and only occur as a very last resort after numerous steps have been taken by a supplier to try to prevent this happening.