CHARGES FOR reconnecting electricity or gas are to be halved under new proposals to ease the hardship faced by thousands of householders unable to pay their energy bills.
The plan by the energy regulator will cut almost €100 off the cost of reconnection to the electricity and gas supply. However, it is being opposed by utilities, who are being asked to bear 50 per cent of the cost.
The Commission for Energy Regulation says energy suppliers such as the ESB and Bord Gáis should in future pay half the cost of disconnection and reconnection charges and should review the level of charges they currently impose. The changes would apply for a one-year period to help consumers struggling with rising unemployment, diminishing household income and increased outgoings.
Bord Gáis has reacted angrily to the proposal by accusing the commission of moving towards confrontation with energy suppliers. It says the cost of disconnections should be shared equally by all its customers.
More than 2,000 electricity customers a month are being disconnected because of non-payment of bills, figures show, and 300 gas meters are being locked each month.
At present, it costs an electricity customer €86 plus VAT to have their supply disconnected, and €88 to be reconnected. Both charges must be paid before supply is restored. The charge for disconnection and reconnection of gas supply is €61.74.
In a consultation paper, the commission describes the number of debt-ridden customers being disconnected as unacceptable.
Under present rules, disconnections cannot be carried out on Fridays or weekends, or where customers are using life-support equipment. Elderly customers cannot be disconnected in the winter and suppliers are required to discuss alternative methods of payment with support agencies such as St Vincent de Paul.
Now, the commission says the costs of disconnection and reconnection should be shared between supplier and those who have been cut off. It says this will incentivise the supplier to tackle customers’ debt issues.
