Seán Kyne (Galway West, Fine Gael)
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322. To ask the Minister for Social Protection her plans to work with the National Consumer Agency, the State agency under its remit, to provide assistance to older citizens in selecting energy products/services in view of the shift in focus of the household benefits package from units based approach to a credit based one; and if she will make a statement on the matter. [3144/13]

Seán Kyne (Galway West, Fine Gael)
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404. To ask the Minister for Social Protection his plans to provide assistance to older citizens in receipt of the household benefits package in securing the best value energy package/products in view of the move away from units based approach to a credit based system; and if she plans to work with the National Consumer Agency to achieve this. [3113/13]

Joan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 322 and 404 together.

Following Budget 2013, the structure of electricity/gas allowance has changed and is now aligned with the best average market rate currently available for an unchanged 150 units per month from Airtricity, Bord Gais Éireann (BGE) and Electric Ireland. For those customers with Electric Ireland and BGE, this amount will appear as a cash credit of €35 on their bill. Other customers will continue to receive a cash allowance as before.

Between 2005 and 2011 the number in receipt of the electricity/gas allowance rose by 20% and there are now 405,000 recipients in receipt of an allowance. The cost of the electricity and gas allowances has risen from €110 million in 2005 to an estimated outturn of €201 million in 2012, an increase of 83% over seven years. In the current economic climate these increases were unsustainable.

This change to the electricity and gas elements of the household benefits package will bring significant savings, with estimated expenditure in 2013 of €176 million, while aiming to encourage customers to achieve better savings through greater mobility. The Affordable Energy Strategy drew attention to the fact that customers in receipt of household benefits were much less likely than other customers to switch energy supplier to obtain better value. Only 16% of social welfare customers have switched companies compared to 42% nationally. There will also be some administrative efficiency through simplification of the scheme with one payment rate instead of five.

The Commission for Energy Regulation (CER), following discussions with officials from my Department, has been liaising with the National Consumer Agency with a view to ensuring that information is available for our customers to help with switching companies. In August 2011 the CER published a paper which set out a framework for accreditation for price comparison websites (CER/11/144) following which a website was accredited. This website presents comparison data which can greatly assist those wishing to switch companies and achieve the best value.