Dáil Éireann Debate, Tuesday - 30 November 2010
13 Deputy Leo Varadkar asked the Minister for Communications, Energy and Natural Resources his view on the proposal to reduce reconnection and disconnection charges; and if he will make a statement on the matter. [45065/10]
Amharc ar fhreagraThe increased level of disconnections of gas and electricity customers is a concern for the Government, the Commission for Energy Regulation, CER, and energy utilities. I emphasise the key message for all customers, which is to contact their suppliers to make arrangements before the situation gets to the point of disconnection. I am assured by all energy suppliers that they will continue to work with all customers in genuine difficulty.
The CER has announced its decision that the cost of disconnections for electricity and gas be shared equally between the supplier and the customer in the case of non-payment of account. This is an interim measure commencing on 22 December and will remain in place for 12 months. I welcome this measure and the CER's recognition that the current economic climate is placing additional pressures on energy consumers and that customers' rights needs to be enhanced. I also welcome the regulator's decision to review disconnections charges levied by networks companies and the revision of the code of practice for disconnections to include additional supplier measures to assist domestic customers in managing their bills and reducing disconnection rates.
The Government is committed to mitigating the cost of energy for all consumers and policy and regulatory actions taken to date are paying dividends. EUROSTAT data on energy prices across the member states up to the end of June 2010 indicate that, in the 12 months to June 2010, Ireland experienced the largest decrease in electricity prices in Europe for medium to large business consumers with falls of between 20 and 35%. This compares to an average 4% fall across the rest of the Europe.
Ireland's domestic energy prices have also improved in relative terms in the period to June 2010, with Ireland's domestic electricity prices equivalent to the EU average and Ireland's gas prices now 5% cheaper than the EU average. While working to keep downward pressure on energy prices, we will continue to address the needs of vulnerable consumers in these difficult economic times.
I am also working closely with the Ministers for Social Protection and the Environment, Heritage and Local Government to deliver a fully cohesive Government response to the challenges of addressing energy affordability in Ireland. I expect the affordable energy strategy to be submitted to me shortly with a view to bringing it to Government in the coming weeks.
Additional information not given on the floor of the House.
This strategy will be the framework for building upon the many measures in place to protect vulnerable households at risk from the effects of energy poverty. These measures include social welfare supports such as the fuel allowance and the household benefits package advice on energy efficiency. The warmer homes scheme, WHS, administered by the Sustainable Energy Authority of Ireland provides significant energy efficiency improvements in low-income homes. Improving the thermal efficiency of houses is a critical means of addressing energy affordability.
I am pleased that the CER has moved on this matter and that the cost of disconnection-reconnection will be shared. We have discussed the extent to which people are having their power cut off or "de-energised", as the ESB likes to describe it. It is appalling that when people come to an agreement to sort out their bills, they are then charged for reconnection.
However, something has come to my ears in recent days about which I am concerned. While the ESB is cutting off power to vulnerable people who cannot pay their bills, it is giving free electricity units to senior managers and executives and retired executives. Will the Minister confirm that the ESB does not give free electricity units to its well paid employees while it cuts off power to its customers?
I have not heard details of that but I will come back to the Deputy——
Can the Minister confirm this is untrue?
I have never heard of such an arrangement. I will check and come back to the Deputy straight away.
Would the Minister be horrified if it was true?
Yes, I do not believe that it would be appropriate. I prefer to reply to the key issue of those in danger of disconnection because these are the people we have to care about. We have witnessed a change in the arrangements whereby the disconnection charge has been lowered but it is critical that under the new arrangements suppliers have to give clear written communications and refer to MABS in disconnection cases. There has to be a minimum of four successful contacts with the customer, at least two of which would be in writing, with each attempt to be made no less than three working days apart. There has to be a mandatory notice of supply disconnection with a minimum of seven to ten business days notice.
The CER has responded and the utility companies will have to respond further in recognising that there are customers in difficulty who have to be managed. The changes in the code will help and we will have to monitor everything to make sure people are not cut off in difficult times.
We cannot take Question No. 14 as Deputy D'Arcy is not present.
Question No. 14 lapsed.
