HOW DOES a company that favours energy conservation by its customers, then penalise them for low energy consumption, and require them to pay more for using less power? Electric Ireland, the ESB controlled supplier, has sought to do so, by introducing a new standing charge that is levied on low energy users; on those who whether by choice or through necessity – economise, and consume small amounts of electricity. They now find they are being punished, not rewarded, for their attempts to save money and energy.
For a State-owned company to introduce such perverse incentives, by actively discouraging thrift and energy conservation, is a regrettable decision that now requires a more detailed explanation. To do so against the background of rising energy prices for consumers is hard to understand. Electric Ireland has done too little to justify this arbitrary price increase, which could affect some 100,000 home owners. Minister for Energy Pat Rabbitte has surmised that vacant holiday cottages, empty for most of the year, are the main targets of this new charge. Owners of second homes are liable for a new tax on their dwellings, while those with septic tanks must now pay a registration fee. Electric Ireland’s special charge has added a further burden on some who, faced with falling real incomes and rising costs, are struggling to manage their financial affairs.
Other energy providers, Airtricity and Bord Gáis, have said they do not intend to introduce a low-user standing charge for their customers. Presumably they too have encountered a similar problem – albeit on a smaller scale – and also incur losses on dwellings with low consumption of electricity. Electric Ireland’s daily standing charge for electricity is now much higher than those of its competitors. For those who might hope to minimise the impact of the new charge, and save money by having their electricity disconnected while their dwelling was vacant, that too they will discover has its costs: a charge for disconnection and for reconnection is applied.
The move by Electric Ireland to penalise its own customers, via arbitrary charges, exemplifies what is happening elsewhere in business, not least in the private sector. Airlines, it would seem, have raised as much – if not more – revenue by levying extra charges on passengers, as they have from ticket sales. Bank customers too find they are subject to a bewildering array of charges for services that once were freely offered. Regrettably, it seems, Electric Ireland is now intent on adopting a similar revenue-enhancing approach.