Regulator warns energy suppliers not to cut off vulnerable customers

The Commission for Regulation of Utilities has issued a letter to all energy suppliers reinforcing the importance of consumer protection measures for the winter months and beyond.

With energy costs on the rise over recent months, this winter will prove to be a difficult one for many around the country.

The financial challenges of the pandemic coupled with these rising costs mean some households fear they may not be able to keep up with bills and could potentially be disconnected.

Energy and gas providers have hiked rates more than 30 times this year, with some people facing bill increases of €805 over a year.

With this in mind, the Commission for Regulation of Utilities (CRU) has issued a letter to all energy suppliers reinforcing the importance of consumer protection measures for the winter months and beyond.

The independent regulator of energy and water is launching a campaign to ensure people are aware of their rights and the minimum levels of service that energy suppliers are required to provide.

It is important that consumers who are having difficulties paying their bills engage with their supplier to work out a plan going forward.

Some suppliers have signed up to the voluntary Energy Engage Code which means customers engaging with their supplier will never be disconnected.

Affordable payment plans

Providers are required to deal with cases on an individual basis to agree on affordable payment plans and every customer must have their case heard sympathetically.

There are a number of ways that providers can help those who are in financial difficulty including budget controllers or pre-pay meters.

Vulnerable customers who are critically dependent on electrically powered equipment should be identified and included on the Priority Services Register and a Special Services Register.

Customers in these cases are not disconnected or de-energised at any time for non-payment of bills. They are also placed on the most economic tariff available to suit their requirements.

Those who have a smart meter and time-of-use tariff should be provided with tips on how to reduce or shift their energy consumption.

Disconnection of a customer should only be carried out as a last resort, according to the CRU.

Protections for customers

Aoife MacEvilly, CRU chairperson, said it was more important than ever to highlight the protections in place for customers.

"Customers who are having difficulty paying their bills but who engage with their suppliers will be offered a repayment plan or a pre-payment meter to help them manage their debt," she said.

"It is also crucial that vulnerable customers who may be particularly impacted by disconnection or are dependent on electrically powered equipment, request to be registered on their energy supplier's vulnerable customer register."

Household energy costs rose by 10.8% since October 2020, according to the Central Statistics Office.

It said the year-on-year jump in October marked the largest annual change in prices since April 2007.

Meanwhile, the European Commission said energy costs across Europe rose "at a tumultuous pace over the last month" and risk pushing prices for households higher.