THE ESB has defended its decision to discontinue the option of paying by credit card for its two million electricity subscribers.
The company has told about 19,000 customers who were debiting their electricity bills against their credit card that they must henceforth use alternative methods of payment.
A spokeswoman said the facility had been withdrawn to save money: "The business must explore the most cost-effective payment channels to keep costs to our customers at a minimum".
She also blamed the "very substantial cost" and technical difficulties of encrypting credit card details.
She said the ESB was unable to meet a June 1st deadline for introducing new higher data security standards, which involves encryption of cardholder details, as demanded by the leading credit card companies.
Credit cards, while convenient for the consumer, are expensive for traders, who pay fees - typically, about 2.5 per cent of the value of a transaction - to the credit card companies.
The ESB wrote to customers paying by credit card last April informing them of the change. "These customers were then given a considerable period of time to organise an alternate payment method," the spokeswoman said.
She pointed out that the company offers customers 14 different payment options, including laser.
However, few of these options match the advantages offered by direct debit from a credit card. Unlike direct debits from a bank account, there is no danger of falling into the red and, so long as the bill is paid off each month, it costs nothing.
Chris O'Reilly, an ESB subscriber in Co Wicklow, told The Irish Timesthe company's decision had removed a convenient and effective way of paying utility bills.
He had used the method for up to 20 years. "By rolling all my utility bills into one, and paying in one lump sum every month, I was able to pay my way in the simplest manner, but now that option is gone."
Mr O'Reilly, who has complained to the ESB and the Commission for Energy Regulation, fears it will "open the flood gates" for other companies to reject payment by credit card.
The ESB denied the company had broken a contract by ending the arrangement with existing customers, as what was involved was merely a payment option rather than a contract. She said the regulator had been told of the change.
