Increase in gas and electricity disconnections

A worrying rise in the number of gas and electricity customers being disconnected has been reported by the energy regulator for the first three months of 2012.

The Commission for Energy Regulation expressed concern that there were 5,063 electricity disconnections and 1,706 gas disconnections in the first quarter due to non-payment.

Significant numbers may, however, relate to vacant homes and businesses.

Although preliminary April and May data suggests a reversal of this spike, the trend is enough to warrant singling out in the latest electricity and gas retail markets report.

The CER pointed out that 4,177 homes had their electricity supply cut in the first quarter. It was a huge jump from just over 2,500 in the same three months of 2011, although last year’s figures may have been skewed by the fact it was the tail end of a particularly cold winter. But the figures point to one third more disconnections than in the first quarter of 2010.

Likewise, the 1,717 gas disconnections from January to March compares with 519 in the first quarter of 2011, but is slightly down on the figure of 1,918 in the same period two years ago.

With hundreds of homeowners having difficulty keeping up with their bills, Bord Gáis Energy customers will be hoping its request to the CER last week for a 7.5% rise in its charges from October is unsuccessful.

Electric Ireland, part of the ESB, had the best record for disconnections in the electricity market, reducing the number by 60% on the first three months of last year to below 700, equivalent to less than 2.5 disconnections for every 10,000 domestic customers.

Airtricity had a disconnection rate of 16 for every 10,000 customers, double the rate at the start of last year, although it said an IT issue means these included disconnections related to changes of tenancy andother reasons unconnected to non-payment.

Bord Gáis Energy’s electricity disconnection rate jumped to 14 per 10,000 in March, up from less than 2.5 a year earlier and double the rate it was in January.

Flogas had the highest rate of domestic gas disconnections from January to March, followed by Bord Gáis Energy, Airtricity and Electric Ireland, which disconnected just one customer. The company said it has been working with customers to distinguish between those who will not pay and those who can not.

“Through a combination of installing pay-as-you-go [PAYG] meters and payment arrangement plans, Electric Ireland is helping customers in difficulty to better manage their bills and avoid disconnection,” said general manager Liam Molloy. “These practical solutions mean that for many customers disconnection need no longer be a reality.”

The CER reports a big jump in PAYG electricity meters, with 2,634 of the 3,345 in place having been installed in the first three months of this year. More than 29,000 PAYG meters have been installed for gas customers, 3,300 of them put in place in the first quarter of 2012.

“The CER is actively working with suppliers to understand what proactive measures they are adopting to reduce the number of customer disconnections; including early engagement, increasing the number of customer contacts and the installation of PAYG meters, which is having a positive impact on the level of disconnections,” the regulator report said.