Written answers

Thursday, 15 December 2022

Department of Communications, Climate Action and Environment

Energy Usage

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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158. To ask the Minister for Communications, Climate Action and Environment the up-to-date position regarding supports for pay-as-you-go gas and electricity customers to protect them from disconnection this winter; and if he will make a statement on the matter. [62888/22]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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Responsibility for the regulation of the electricity market is a matter for the Commission for Regulation of Utilities (CRU) which is an independent regulator, accountable to a Committee of the Oireachtas and not to me as Minister. The CRU was assigned responsibility for the regulation of the Irish electricity sector following the enactment of the Electricity Regulation Act, 1999 and subsequent legislation.Under its legal mandate, the CRU is responsible for implementing energy specific customer protection measures including in relation to the matters raised by the Deputy.

As part of the strengthened customer protection measures CRU introduced reduced debt burdens on Pay-as-You-Go customers. The new measures mean that the debt repayment levels will reduce to 10% from a previous 25% on pay-as-you-go customers top-up payments. On a €20 top-up for example, only €2 will go towards debt repayment (if it exists), rather than €5 previously. From 1 December suppliers will be required to ensure that all customers with a financial hardship meter are automatically placed on the most economic tariff. Furthermore, the CRU has decided to suspend the €200 gas meter exchange siteworks charge associated with a customer moving from a PAYG gas meter to a billpay meter, for all domestic customers. There is no charge to move from an electricity PAYG meter to a billpay meter.

Budget 2023 put in place €2.5 billion in once off cost of living supports including a new Electricity Cost Emergency Benefit Scheme through which €550.47 (exclusive of VAT) will be credited to each domestic electricity account in three payments of €183.49 (exclusive of VAT) in each of the following billing periods - November/December 2022, January/February 2023 and March/April 2023. The estimated cost of this scheme is €1.211 billion. The payment applies to domestic electricity accounts, including those with Pay As You Go meters, which are subject to distribution use of system charges at the rate for urban domestic customers (DG1) or the rate for rural domestic customers (DG2).

Any customer that is in need of additional support may apply for an Additional Needs Payment provided by the Department of Social Protection, including customers on a Pay As You Go meter who have a need for financial assistance to facilitate their continued energy supply. Every effort will be made to ensure that these vulnerable individuals in financial distress, and who qualify, receive an Additional Needs Payment on the same day or as soon as possible where it relates to electricity and heating expenses.

On 13 December, Government approved a new Energy Poverty Action Plan, which provides for the establishment of a €10 million fund to further support people in, or at risk of, energy poverty this winter and into 2023, including people on PAYG meters. The fund will provide a further safeguard in addition to the supports from suppliers and the Additional Needs Payment operated by the Department of Social Protection. The Money Advice and Budgeting Service (MABS) is also available to provide budgeting advice and advocacy support.

Furthermore, I will amend legislation to extend the definition of vulnerable customer to include financially vulnerable, which will extend the existing additional protections for vulnerable customers to a wider cohort. These protections include an obligation on suppliers to ensure that vulnerable customers on PAYG meters are provided with information on what to do if the PAYG meter is no longer suitable for use by them on grounds of vulnerability.

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