Retailers criticised over top-up charge

Retailers have come under pressure to remove a surcharge of up to 50c imposed on customers topping up their pay-as- you-go electricity and gas cards.

The Money Advice and Budgeting Service (Mabs) has claimed seven out of nine retailers surveyed in one Dublin suburb alone were making customers pay surcharges ranging from 20c to 50c.

Michael Culloty of Mabs said it had been asked to advocate for the top-up service because it was a means of ensuring people were not cut off if they fell into arrears on their bills.

He told RTÉ radio that the client base of Mabs which used the service did so because they were in financial difficulty, “finding it hard to meet normal, basic needs”.

“This is an additional charge on them,” said Mr Culloty. “You are back to the issue of the poor paying more.”

Mr Culloty also pointed out that the top-up service brought additional footfall into the shops in question — people using the service were likely to buy other items while they were there.

He called for an investigation into how surcharges were applied and suggested the service should be given to An Post outlets.

Electric Ireland said that, as one of the energy providers affected by the issue, it was strongly opposed to the introduction of surcharges by some retailers. A spokesman said it was proactively working with its service providers to address the issue and ensure that any such surcharges were discontinued.

“When Electric Ireland becomes aware of instances of surcharging, we contact the retail service provider in order that they can address this issue directly with the relevant retailer,” he said.

However, RGData which represents independent shops, convenience stores, and supermarkets, said various utility companies and local authorities had made major cost savings by outsourcing their payment services to local retailers.

It said local shops could not provide these services at a loss and that was why many stores applied surcharges to cover the cost of providing these services.

“Our members are community retailers who are trying to provide convenient services for their customers,” said RGData director general Tara Buckley. “However, our members will not survive in business if they provide services at a loss. It is time that these large state companies, like the ESB and Bord Gáis, addressed this issue and started reimbursing retailers fairly to cover the cost of providing this convenient service to their customers.”