Electricity firms defend fees for reconnection

IN letters to Shannon Town Council, both Electric Ireland and Airtricity have defended the reconnection fees they charge to customers.

The letters came following a motion at an earlier meeting of the council, regarding the treatment of people who have their power cut off.

The Electric Ireland letter stated the fees it charges are not unreasonable. “The reconnection fees charged by Electric Ireland are set by the Commission for Energy Regulation (CER). These are set at the same level as the disconnection fees. Since November 2010, it has instructed all suppliers operating in the electricity market to absorb 50% of all charges levied on customers. The current rates set by CER are €79.45 with only 50% of the charge applied to the customers account.

“CER reported in mid-2012 that Electric Ireland had the lowest rate of domestic disconnections per 10,000 customers compared with the other suppliers in the residential market. We continue to work closely with St Vincent De Paul and MABS to encourage customers to make early contact with us if they are experiencing difficulties in paying their utility bills. As a result of our efforts to engage with customers at the earliest point, we entered into approximately 300,000 payment arrangement plans with customers in 2012. We had over 11,000 PAYG (Pay As You Go) meters installed by the end of 2012 and this is in addition to 19,500 token meters.”

For its part, Airtricity also said it doesn’t charge an excessive amount for reconnection. “Airtricity is strictly governed by the Regulator (CER) in these matters. Customers are only disconnected due to non-payment after a lengthy process and offers of payment arrangement or a pre-pay meter free of charge to the customer (where technically possible) is available when we discuss the situation with the customer.

“We will make every effort not to disconnect. We will work with customers to resolve arrears as early as possible. Our preferred option is an arrangement to manage the arrears that can work for the customer.

“The ESB Networks charge for a disconnection or reconnection due to non payment is €79.45, including VAT for each. Airtricity pass through just 50% of this to the customer and bears the cost of the other 50% itself. In addition, I can confirm we do not charge a customer any of our own direct costs. This is governed by the regulator. This does not apply in cases of no contract.”

At Tuesday’s meeting of the town council, Councillor Tony McMahon said the reconnection fee is still substantial, particularly as they also have to deal with outstanding bills.

Councillor Sean ­McLoughlin said, in some cases, people are asked to pay half of the outstanding bill along with the reconnection fee.

He said there should be more of an effort made to engage with people before they build up bills that they can’t cope with.