Pay-as-you-go energy users not protected from disconnection this winter

In August it was announced that the energy regulator, CRU, has extended the moratorium on disconnections for energy users from mid-December to mid-January to December 1st to February 28th in a bid to keep energy flowing this winter.

In response to a question by Solidarity-People Before Profit TD, Mick Barry, the Táiniste Leo Varadkar, confirmed that households using pay-as-you-go energy meters will face disconnection between November and March this winter while those who pay by direct debit will be able to avail of the disconnection protection.

Local representative for People Before Profit, Ruairí Fahy, said “The exclusion of pay-as-you-go energy meter users is a direct attack on the people in our society who are already suffering the most.

“This is another example of how expensive it is to be poor as pay-as-you-go energy users already face higher unit prices. For those users who fall into arrears, they lose 10-25% of any new topup they add to their meter leaving them on a debt treadmill just to keep the lights on.

“Many people I’ve spoken to about their energy woes have said they moved to a pay-as-you-go meter from the fear that an estimated bill or unit price hike would put them in overdraft but this choice has saddled them with higher prices and a risk of having their energy cut off.

“At the very least, we need a full moratorium on energy disconnections this winter or we will face a severe crisis where the most vulnerable in our society, many of whom also have mobility issues, will have no heating or lighting as a result of this cruel policy.”

In a recent oireachtas “Environment and Climate Action Committee” debate, chair of CRU, Aoife MacEvilly, claimed that the energy regulator is working with energy companies to continue “communication campaigns to highlight the importance of registering as a vulnerable customer”, so customers know they can sign up to avail of the lowest available tariffs.

People Before Profit TD, Bríd Smith, questioning Ms MacEvilly asked “Is it possible for the CRU to ask all of the suppliers to give people all of the most beneficial tariffs, ensure[sic] there are no disconnections over the winter?”

In her reply Ms MacEvily said, “Suppliers that are attracting new customers offer a discount. They can only afford to offer that discount to a certain number of customers” and that the CRU is careful that their “interventions do not drive suppliers out of businesses.”

In response to these measures by the CRU, Ruairí Fahy commented, “what’s really needed is to call a halt to this energy market experiment, it has been an out and out failure where we have some of the poorest subsidising energy for the wealthiest.

“We have gone from some of the cheapest electricity in the EU, when the ESB was publicly owned and operating on a not-for-profit mandate, to one of the most expensive. The shift to a for-profit energy system has reduced the incentive to transition to renewables and left us exposed to international energy markets.

“We need to take our energy generation and delivery into public ownership and provide it based on need if we want to end our reliance on imported fossil fuels and ensure a secure and affordable supply.”