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Disconnection of Utilities

Dáil Éireann Debate, Tuesday - 6 March 2012

Tuesday, 6 March 2012

Questions (279)

Finian McGrath

Question:

334 Deputy Finian McGrath asked the Minister for Communications, Energy and Natural Resources his views on a matter (details supplied) regarding a gas bill. [12845/12]

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Written answers

Responsibility for the regulation of disconnection and reconnection processes and fees is a matter for the Commission for Energy Regulation (CER), which is an independent statutory body. I have no function in the matter.

It is the case that the continuing level of disconnections is a matter of considerable concern for me and my Government colleagues, 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.

In fulfilment of its customer protection remit, the CER has taken a number of initiatives in relation to disconnections policy since 2010. In 2010, 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. The CER also issued updated Guidelines for the Disconnections Code of Practice requiring suppliers to engage with customers experiencing difficulties making payments against their bills.

The CER has also proactively facilitated a "Pay as You Go" metering system, also known as a prepayment meter, in both the natural gas and electricity industry to allow customers to manage their bills more effectively. The ‘Pay as You Go' metering system is being rolled out by all suppliers across the country. In addition to providing a useful budgeting tool to customers, suppliers are required to offer customers facing disconnection the option of a "Pay as You Go" meter, where this is suitable, instead of proceeding to disconnect the customer. In these circumstances the customer's outstanding debt is placed on the meter and is repaid over time.

CER advises that when a customer is disconnected from either natural gas or electricity for an extended period of time and their meter has been removed, prior to reconnection, the customer's installation requires safety checks and certification to ensure that it is still safe to have natural gas or electricity connected to it. In addition, if the customer has been disconnected for over two years, reconnection costs will be charged.

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.

In relation to the individual customer to whom this question is related, my Department is advised that the customer has been offered reconnection with a "Pay as You Go" meter which will facilitate the repayment of outstanding debt and avoid any further build up from occurring.

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