Patrick O'Donovan (Limerick, Fine Gael)
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To ask the Minister for Communications, Energy and Natural Resources if his attention has been drawn to the difficulty associated with persons obtaining large deposits for electricity companies to get connected to an electricity supply even for people with clean/good credit history; and if he will make a statement on the matter. [15542/13]

Pat Rabbitte (Dublin South West, Labour)
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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. I have no statutory function in the setting of electricity supply contracts in the business or domestic sectors.

Ireland’s electricity and gas markets, both wholesale and retail, are characterised by vigorous competition and are regulated by the CER. The setting of supply contracts is a day to day operational matter for electricity supply companies. Such contracts are governed by the CER’s guidelines for suppliers’ Codes of Practice, Customer Charter and Terms and Conditions of Supply for Household Customers.

Energy suppliers have always had requirements regarding the provision of deposits in advance but, due to the general economic situation, it is possible that suppliers are strictly applying these requirements as standard, whereas in the past they may have waived them. I understand from the CER that one of the main reasons that electricity and gas suppliers require deposits is that their customers consume the energy supplied in advance and pay in arrears. Therefore suppliers must always meet the cost of providing the energy in advance of payment and consequently they run the risk of non-payment from their customers. This is in contrast to suppliers of other energy products, such as heating oil or Liquid Petroleum Gas (LPG), as customers are required by the suppliers to pay for these products in advance.