Households will not be disconnected for non-payment of energy bills this winter, regulator says

The energy regulator has said no household will be disconnected for not paying their energy bills during the winter months that run between December 1st and the end of February.

The Commission for the Regulation of Utilities (CRU) has put in place a series of emergency arrangements for winter to protect customers who find themselves in hardship because of spiralling electricity and gas prices.

Its new customer protection measures include extended debt repayment periods for customers in debt; and lower debt repayment on top-ups for customers with financial hardship prepayment meters.

In addition those customers on financial hardship meters will be offered the most favourable tariff available from their supplier. There will also be extended moratorium periods for disconnections this winter.

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Aoife McEvilly, a CRU Commissioner, told the Oireachtas Committee on Energy and Climate Change on Tuesday that exceptionally high and volatile wholesale EU gas prices were putting pressure on domestic and business customers.

“The CRU is deeply concerned about the impact these price increases will have on all customers and particularly vulnerable customers,” she said.

She said the CRU are working through the “Supplier of Last Resort” process for Panda Power customers after it announced it was exiting the market. This process ensures customers of the company which is leaving the market are guaranteed continuity of supply.

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She said there have been three supplier of last resort events in the Irish market during 2022 with the exit from the domestic market of three energy supply companies.

“We have ensured that supply is maintained for some 100,000 affected customers,” she said.

Ms McEvilly told the committee, chaired by Limerick TD Brian Leddin, that this year was the first time the CRU had to initiate a “Supplier of Last Resort” process. She said the closing of energy supply companies was related to the volatility in the markets.

“It is a sign of the intense pressure on the energy sector at the moment.

“We never had such events in Ireland before,” she said.

“There have been a number in the UK, some 30 in the last year.”

She said that it has also happened across Europe where suppliers were also facing really high and volatile prices and spending more money to hedge prices for their customers.

She said the decision by Panda and the two other companies to exit the market was not good for competition. “The more suppliers we have, the better it is for them. We continue to work with all suppliers in the markets,” she told Fine Gael TD Alan Farrell.

CRU Commissioner Paul McGowan said batteries were beginning to play a part in helping ensuring energy supply during peak hours. He said there was now 100,000kW (100mw) or more of battery capacity in the system.

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In reply to a question by Christopher O’Sullivan of Fianna Fáil, he said Eirgrid was now looking at how they could be used intelligently over the peak period, for example, by sequencing them to be used over four hours rather than two.

The CRU said higher prices would present a challenge and problem for households on prepay hardship meters, whose credit will last for less time because of prices. Ms McEvilly said that is why it has asked that those customers be put on the lowest tariffs and have extended debt repayment.

Bríd Smith of People Before Profit, said all customers needed to be put on the lowest possible tariffs and nobody should be disconnected this winter.

Ms McEvilly said vulnerable customers who were reliant on electrically generated medical devices, or mobility devices, could never be disconnected on grounds of not paying bills.

Her colleague, Karen Trant, said it had extended the winter period from October to March for other vulnerable customers, including the elderly, and no one will be disconnected during that period for non-payment of bills.

Ms Trant also disclosed there will be no disconnections for any customer between December 1st and the end of February this year in light of the price situation.