'Unjust' that some prepay energy customers have to top up before accessing government credit

The scheme to give everyone €200 off their electricity bill was created by the Government as a means of helping people deal with surging energy costs. Picture: Peter Byrne/PA

It is “unjust” that some prepay meter users will have to pay €30 before they can avail of the full €200 on the Government’s energy credit scheme, a TD has said.

Solidarity-People Before Profit’s Bríd Smith said “many of the poorest facing this crisis are on prepay meters” and that recent price hikes are causing “huge distress on many vulnerable groups”.

The scheme to give everyone €200 off their electricity bill was created by the Government as a means of helping people deal with surging energy costs.

New statistics revealed by the Central Statistics Office (CSO) this week showed that in the year to March 2022, the cost of electricity had risen 22.4% and gas had risen 27.9%.

Analysis from Bonkers.ie has said since prices started to rise in October 2020, “some suppliers have announced price hikes that have added almost €1,500 to households’ annual gas and electricity bills”.

And more is to come, as most major energy suppliers announced price hikes which are set to take effect in the coming weeks.

In the face of the cost of living crisis, the Government has been urged to do more to help households deal with the impact. 

Tánaiste Leo Varadkar told the Dáil on Thursday on that “more needs to be done” to combat rising costs, and said the Government would bring in measures to offset the carbon tax rise due to kick in on May 1.

Prepay energy more expensive

Prepay energy costs are generally more expensive than other forms of energy bills, but do mean customers avoid getting huge bills in one go.

Previous research from the likes of the Money Advice and Budgeting Service (Mabs) suggested people on lower incomes had moved to prepay energy which may have decreased arrears on normal bills, but also left them without the money to heat their home.

Reacting to those statistics from the CSO, St Vincent de Paul highlighted the impact that high energy costs is having on those with prepay meters, in particular.

A spokesperson said: “People are cutting back on essential energy use for fear of the next bill, or because there is no money to top up prepayment meters, and are having to make the impossible choice between buying food or turning the heat on.”

According to Minister for Communications Eamon Ryan, there is a “small population” of people on older meters who will have to pay €30 to access the Government’s €200 credit scheme. People on regular bills will not have to pay anything to access the scheme.

He said: “I understand that there is a small population of older prepayment meters which, due to their age and inbuilt monetary limits, will require the customer to redeem their credit through three separate transactions over the space of a few days.

"There is a ‘hard-coded’ single vend limit of €100 on a small amount of legacy prepayment meters." 

To redeem each stage of the credit, customers will need to buy a (minimum) €10 top up.

“When they do this they will receive a new 40-digit code which will credit their meter with the Government electricity credit when entered," Mr Ryan said.

"Once the credit is applied to the customer’s account/meter they can access it by vending three times.” 

Ms Smith said that putting €10 on a fuel card a few times “may not seem like a big deal I can tell you it is for many”.

“It is particularly unjust to have to do this to avail of the state aid that all users are getting; there has to be a better way and greater thought should have gone into this,” she added.