Some people were using the winter moratoriums on power disconnections to “game” the system and run up large bills that they had no intention of paying, the country’s main trade group for the electricity and gas retail industry warned the energy regulator.
The Electricity Association of Ireland (EAI) told the Commission for Regulation of Utilities (CRU) that ordinary customers would end up suffering as the debts accrued by some customers made their way back to people who did pay their bills.
The association said some people had run up debts exceeding €10,000 with no plans to engage with their supplier or make arrangements to pay off the debt.
The EAI is a lobby group for the electricity and gas sector operating under the single electricity market on the island of Ireland. It claims to represent utilities that account for 90 per cent of generation and retail business activities as well as all distribution within the market.
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In an email to the CRU, the association said suppliers needed at a minimum to be allowed to disconnect customers considered “high-impact cases”.
The EAI wrote: “These cases would be individually reviewed and approved and target those who will never engage with their supplier in any meaningful way and have in many cases ran up debts of over €10,000-plus. Without such an ability, suppliers run the risk where a small but growing number of customers will game the protections and suppliers will end up with a larger level of debt. In the long term, this will have to make its way back to general customers who are paying, which is inequitable.”
The association said they had also done significant research during the summer on disconnections and arrears, and how a moratorium didn’t always help customers that were falling behind on their bills.
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They also raised concerns over a loophole in how the moratorium worked last year where empty houses and apartments could not have their supply cut.
An email explained: “Our members’ experience last year was that vacant properties could not be disconnected, creating unnecessary energy demand and safety concerns.”
In emails to the Department of the Environment, the CRU explained the rationale behind having a slightly shorter duration for the disconnection moratorium this year. A message said energy prices had fallen somewhat and they were hopeful this would continue into the first quarter of next year.
The email added: “The reason it is slightly shorter this winter for all customers is that the data shows us that customers disengage when there is a lengthy moratorium and more drop out of repayment plans.”
Asked about the records, the CRU referred to a press statement from the time it announced its plans for the winter moratorium. That said the moratorium would again be extended this year from a three-week period around Christmas to a longer two-month stretch covering this coming December and January.
