Prepay energy customers will not be cut off, vows Taoiseach
PLANS are being drawn up to identify vulnerable householders who run out of credit on prepay gas and electricity meters, to ensure no homes go without heat this winter.
It comes as Taoiseach Micheál Martin yesterday guaranteed that no homes will go cold this winter, although he was unable to rule out blackouts.
He told RTÉ Radio One: ‘In the middle of an energy crisis like this we can’t have disconnections. We’re very clear about that. We don’t want people disconnected, particularly vulnerable people, and people who will find difficulty in paying their bills.’
Environment Minister Eamon Ryan will meet with the Commission for Regulation of Utilities (CRU) and energy suppliers in the coming week to finalise solutions to protect householders.
The CRU has already introduced enhanced customer protections to support vulnerable users.
Last month it asked electricity and gas suppliers to promote their vulnerable customer registers and the protections they offer.
However, the Minister is seeking to add additional protections such as a warning system when someone ‘self-disconnects’ because the meter runs out, with potential follow-ups to ensure the home is not occupied and inhabitants left without heating.
A restructuring of repayment for pay-as-you-go customers has also been introduced. Previously, if a household had a debt, when they next put credit on their meter it would deduct 25% towards the debt. This has been reduced to 10%, so the arrears are paid off more slowly but the customer does not go short.
The supplier-led Energy Engage Code provides a further level of security for domestic electricity and gas customers.
This code encourages customers who are having difficulty in paying a bill or paying a meter to engage with their supplier.
Under the code, suppliers will not disconnect customers who engage with them and they must provide customers with every opportunity to avoid disconnection.
An additional €1billion was provided to the Department of Social Protection in the Budget and it will be used, in part, to fund payments to those who cannot afford their bills.
European energy ministers last week reached agreement on a windfall tax from energy providers. Ireland is set to receive in the region of €2billion.
The Taoiseach said details will be ironed out shortly to outline how consumers will be protected.
He added: ‘We will underpin and help people in terms of meeting their bills. But you can give people that reassurance now, today, that they will not be disconnected if they’re on pay-as-you-go meters.’
Mr Martin cautioned that blackouts could not be ruled out this winter and said next year will be even more challenging.
He said: ‘I would hope not [that there won’t be blackouts this winter], but we can never be certain in relation to that.
‘We are taking measures in terms of energy procurement and in extending the timelines for various plants in the country. I think, this year, we should be okay this winter but one can never guarantee. Next winter could be challenging.’
The CRU recently announced an increase in the cost of energy during peak times in an attempt to reduce consumption.