Will you pay the ESB hike sooner than you think?

ON January 1 the price of electricity went up officially by 12.6%, but for a substantial section of the population this increase could be applied to a portion of their electricity usage from as early as last October.

Any domestic consumer on the current bimonthly billing period of December/January faces the possibility of a significant overcharge in their February bill. Even though total electricity usage accounted for in this period is divided proportionately between the two months for charging purposes because of current ESB billing practice, there are a number of conditions that will contribute to this, presumably unintended, outcome.

Under existing regulations, the ESB is permitted to estimate a customer’s electricity usage in two of the possible six meter visits a year. These estimates, in theory, are based on a customer’s ‘usage profile’ to ensure reasonable accuracy. Any necessary adjustment is made in the account following the next meter reading.

But for whatever reason, bills have been issued which show a significant discrepancy from the customer’s usage profile. If a consumer’s bill for October/November is underestimated, any balance due is accounted for in the December/January billing period.

Consequently, about half of this due balance is charged at the higher January tariff.

Domestic usage is highest in December. Again, in this situation about half the difference in the December over the January usage is subject to the higher tariff. And if a customer is absent from home for some of January, up to half of his/her December usage is charged at the higher rate. The ESB and the Commission for Energy Regulation defend the current practice of increasing prices midway through a billing period on the basis of ‘best international practice’ and suggest that consumers read their meter on December 31, but they have issued no general notification alerting customers to the situation.

If customers failed to do this, they could be overcharged and have no way of proving this subsequently because the practice is not transparent.

In the meantime, if any of the customers affected were fortunate enough to have read their meter on new year’s eve, they should compare it with the readings in their bills now being issued. If the customer’s reading is higher, they should advise ESB Accounts on 1850 372372.

Ken Menton

North Circular Road

Limerick