Surging energy prices raise concerns over ‘self-disconnections’

Concerns are growing that thousands of prepay electricity and gas meter users could effectively “self-disconnect” because they are receiving increasingly less energy from top-ups.

The Society of St Vincent de Paul (SVP) has highlighted the issue faced by many of almost 47,000 users of financial hardship meters who do not have the protections of disconnection moratoriums that apply to bill payers.

In August the SVP and the State-funded Money Advice and Budgeting Service (Mabs) recorded significant hikes in call rates to their helplines, an early reflection of energy price increases that have not fully materialised in bills.

Bord Gáis Energy last week became the latest provider to announce cost increases of 39 per cent for gas and 34 per cent for electricity.

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Although energy poverty has always existed, SVP said it is particularly concerned about the effects of spiralling costs on prepay customers.

“Self-disconnection is a huge concern for us,” said Tricia Keilthy, the charity’s head of social justice. “And those customers aren’t protected by disconnection moratoriums, simply by the fact that if you don’t have enough money to top-up your meter you’re cut off from your supply automatically.”

By SVP estimates, users of meters were getting six to seven days worth of electricity for a €30 top up at the beginning of 2021. Energy price increases last winter saw that time typically reduced to about three or four days. The effects of the latest surge in costs will cut that even further.

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“So now they either put in €60 to keep the same level of usage or they are running out quicker,” Ms Keilthy said.

Data from the Commission for Regulation of Utilities (CRU) shows that at the end of 2020 there were 44,895 pay-as-you-go financial hardship meters in use by electricity customers and 1,863 by gas customers. Such meters are designed to monitor and control spending.

Last week the CRU published 15 new customer protection measures that will be implemented by energy providers between October and December.

These requirements include enhanced protections for hardship meter users, including that suppliers automatically place them on the cheapest tariff, a move welcomed by the SVP.

However, the charity said the regulator should also direct suppliers to monitor conspicuous gaps between top-ups and contact those users with guidance on available supports.

“We think if people are regularly self-disconnecting, and if it’s the colder parts of the year, the suppliers [should] have to issue emergency top-ups as well for those households,” Ms Keilthy said.

Helpline calls to SVP are up 20 per cent compared to this time last year, a rise directly linked to cost-of-living issues.

Similarly, Mabs — which offers confidential, free advice on financial management and budgeting — has recorded a 63 per cent increase in calls to its national helpline last month compared to August 2021.

The main reason for contact is concern over utilities, whereas in August last year the most common motivation was rent and mortgage pressure.

“People are coming to us with [more] concerns about how much their summer bills are in comparison to previous summers,” said the organisation’s national spokeswoman Michelle O’Hara.

“We would say it’s unusual because generally speaking utility usage in terms of electricity and gas is lower for most people in the summer months.”

Ms O’Hara said that, based on the trends to date and the fact energy providers have already flagged further increases to come, Mabs expects to see more people entering financial difficulty into the winter season.