Moves to protect energy customers from being cut off do not address 'record prices'

Households in debt will now have a minimum of two years to repay arrears while a moratorium on disconnections has been extended from one month to three months.

The energy regulator has moved to protect households from sky-high energy bills this winter, but the measures will not address the overall costs that people must pay.

The Commission for Regulation of Utilities (CRU) has announced a suite of measures to “further protect" customers from some of the worst impacts of record energy price rises.

Households in debt will now have a minimum of two years to repay arrears while a moratorium on disconnections has been extended from one month to three months.

Currently, a ban on disconnections for all household customers is in place from mid-December to mid-January. However, this will be extended to three months, from December 1, 2022, to February 28, 2023.

For vulnerable customers, the ban will extend to six months from October 1, 2022, to March 31, 2022.

Households who have opted for a pay-as-you-go meter out of financial hardship are to be automatically put on the cheapest tariff by their supplier.

Advocacy groups for the poorest in society have raised concerns about the impact of energy price hikes on vulnerable households and low-income families this winter. 

The Society of St Vincent De Paul has already reported an increase of 20% in the number of requests for help since the beginning of this year, with warnings the worst is yet to come. 

Daragh Cassidy, head of communications at price comparison website Bonkers.ie, said consumers “can take comfort" from the new measures announced by the CRU because nobody can be disconnected this winter.

“However, disconnections are quite rare in Ireland anyway and are usually only carried out as a last resort,” he said. 

The key issue here remains the same — households are faced with record energy prices heading into winter and are going to be paying hundreds, maybe thousands, more for their gas and electricity compared to last year.” 

Dermott Jewell, policy and council adviser to the Consumers’ Association of Ireland, called the measures practical and showed a recognition from the regulator that people are struggling.

“But the reality of life is even for many people, 24 months to pay off arrears in this climate will be a challenge anyway,” he said. 

“Anything else that can be done by Government in the budget must be done.” 

The measures were welcomed by Age Action, but the organisation urged the Government to go further.

 “Much more can be done, including reforming the fuel allowance with the creation of an energy guarantee — which is a cash payment — indexed to the changing cost of energy and linked to the energy rating of the home, that would guarantee a minimum quantity of energy for older people," said head of advocacy and communications at Age Action Celine Clarke.