Charges for reconnecting electricity to fall by over 60%

CHARGES FOR reconnecting electricity are to be cut by over 60 per cent from January 1st.

It currently costs an electricity customer €86 for a disconnection and €88 for reconnection. Both sums, which exclude VAT, must be paid before supply can be restored.

The Commission for Energy Regulation has ordered the reduction of both these charges to €70 from next month.

In a separate decision, the regulator has ordered electricity and gas companies to absorb half of the cost of disconnection and reconnection in order to reduce the impact of these charges on heavily indebted households. This change will apply for a one-year period.

This means that from next month, a customer will face a charge of €35 for a disconnection and €35 for reconnection. The reduction applies to customers of all the main electricity utilities, not just ESB. Disconnection and reconnection charges for gas customers are also being cut, from the current level of €61.74 to €30.87, a reduction of 50 per cent.

The regulator is also proposing a number of protections for consumers designed to take effect when the market for retail electricity is deregulated. This will happen when the ESB’s customer numbers fall below 60 per cent of the total market.

These measures proposed include a price comparison tool for consumers and a standard annual statement of price and consumption.