Threefold increase in alternative ESB plans

THE number of payment plans arranged by ESB for customers struggling with their bills has increased threefold to 240,000.

The company said that as a result, it has seen a drop in the number of customers in arrears, from 10% this time last year to 9%, representing 110,000 customers. It has also seen a 40% reduction in the number of customer disconnections, compared to the same period last year.

“As clearly demonstrated, disconnection is very much a last resort and only arises after a lengthy process,” said an ESB spokesman.

This week it was revealed that one in 10 Bord Gáis customers are in arrears of €100 or more on their bills.

However, the number of customers in arrears of 60 days or more is down from 115,000 in May, to 103,163 at the end of September.

Bord Gáis said the rate of disconnections has fallen 33%, from 3,540 between January and August 2010 to 2,393 between January and September 2011. It has also agreed 63,000 payment plans with customers already this year compared with 31,500 for the whole of 2010.

ESB Electric Ireland stressed that it too engages proactively with customers who are experiencing difficulties.

“We also works closely with the Money Advise & Budgeting Service (MABS), St Vincent de Paul and other voluntary agencies in assisting customers,” said the spokesman.

ESB Electric Ireland has entered into 240,000 payment plans with customers so far this year compared to 80,000 for the same period in 2010.

“The number of arrangements reflects ESB Electric Ireland’s willingness to proactively engage with our customers to avoid disconnection,” the spokesman said.

ESB is currently installing around 300 pre-payment meters a month in an effort to avoid disconnection.

It said that there is no new policy as regards pursuing closed account debt, but it is more a case of managing bad debts levels which were €20 million in 2010 and are forecast to be of a similar level for 2011.

ESB Electric Ireland also offers customers a “Household Budget Price Plan”, which offers customers a discount on standard unit rates of up to 6% if they sign up to An Post’s Household Budget Scheme, or enter a payment plan to address arrears.