Time to cap standing charges on energy

The costs of energy crisis

Sir, – With climate change and an approaching electricity capacity crisis facing this country, I believe it’s time the utilities regulator took control over standing charges and set some caps on what can be charged.

Providers are using discounts on unit rates to lure customers and then recuperating the discounts via ridiculous standing charges that vary massively across providers and even on different plans with the same providers. There is absolutely no cost justification for this. Does a pricing plan or an increase in global gas prices really change the costs involved in delivering the same gas or electricity to my home?

We are well on our way to having a nationwide network of smart meters and ESB Networks and the Government deserve massive credit for this progressive plan. These are suppose to encourage consumers to change their usage patterns (reduce consumption, switch to night-time usage) and also to allow regular folks to get some additional return on their investment in domestic solar installations. However, as long as utility providers continue to use excessively standing charges to pay for unit-rate discounts, the incentive for consumers to change usage patters or generate their own solar energy is being massively eroded.

It’s time we had a cap on standing charges, set by the regulator, that aligns with the true costs of providing the energy supply. The providers can then compete with each other through unit pricing so that conscientious consumers can get the benefits they deserve from installing solar systems and reducing or optimising their usage.

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It’s a win-win-win for climate change action, grid capacity and the consumer, and the energy providers can still make their profits from the remaining “energy wasters”. – Yours, etc,

PATRICK SHERRY,

Skerries,

Co Dublin,

Sir, – The energy regulator has recommended further price increases to discourage consumers using electricity during peak hours of 5pm to 7pm, traditionally dinner time in Ireland, for a period of 12 months. Hard-pressed households, already dealing with much-increased costs of power, so much so that all suppliers have made record profits this year, are now being asked to reduce their consumption for two hours each day by way of a further increase as they must compensate for the use by data centres, where it would appear, we have bitten off more than we can chew.

I can only imagine the consternation in households this is going to bring as people arrive home hungry after a challenging day at work or in school, with bedtime approaching for many. It is reminiscent of the 1980s, with stern warnings reminding members of the household regarding the expense of the immersion, except now doing so regarding the cost of cooking dinner, boiling kettles, television, internet, washing, not to mind harassed parents led on a merry dance turning lights off in empty rooms after negligent children, until the nation breaths a collective sigh of relief circa 7pm.

Perhaps it might be more prudent to reduce the current pre-5pm and post-7pm rates, encouraging a return to the traditional lunchtime dinner if working from home. It would seem the energy companies can well afford it. – Yours, etc,

NIAMH BYRNE,

Fairview,

Dublin 3.