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Energy Crisis

As winter approaches, not all energy bill 'hardship funds' are created equal

The Journal asked a number of energy companies if like Electric Ireland, they too had set up hardship funds for customers in need.

HARDSHIP FUNDS TO help customers in difficulty have been set up by some energy companies, but not all. 

With winter approaching and with customers urged to engage with their energy supplier if they had difficulty paying their bills, questions have been raised about whether energy companies have set aside money in hardship funds.

People Before Profit TD Mick Barry has asked Energy Minister Eamon Ryan what companies have such funds and how much is in them. 

He said hardship funds should be the “bare minimum” introduced by companies. 

In a parliamentary question, the minister replied that he is aware that electricity and gas suppliers have set up hardship funds “which provide exceptional financial support to those in need”. 

“I also understand that suppliers are partnering with NGO’s in the operation of these arrangements. Therefore, it is very important that consumers who are finding it difficult to meet  their electricity and gas bills contact their supplier as soon as possible and continue to engage with them,” said the minister. 

“As always, we would encourage any customer who is concerned about their energy costs to contact us directly, and we will work with them to find a solution together.”

Hardship fund

Electric Ireland recently told an Oireachtas Committee that the company’s hardship fund amounts to €3 million, but is being kept under review. 

With energy bills on the rise, Barry said the onus is on utility companies to have such hardship funds given the profits energy firms are making. 

Ryan is understood to be engaging with energy companies with a view to launching a new action plan to deal with energy poverty in the coming weeks. 

A spokesperson for the minister said he has met with all of the energy supply companies at this stage including the smaller suppliers.

Overall, the meetings were described as “very constructive and informative”.

The minister held the meetings to get a real understanding of what’s happening on the ground and how customers are being supported and protected, said his spokesperson. 

Ryan is understood to have asked suppliers to be flexible, and while some are putting in additional supports such as increased resources in customer service, others have put hardship funds in place.

“The hardship funds are a matter for the companies themselves,” said the minister’s spokesperson.

The Journal asked a number of energy companies if like Electric Ireland, they too had set up hardship funds for customers in need. 

The funds appear to be somewhat ad hoc in nature, with each company having their own systems in place, while some do not have any funds set aside. 

Customers in financial difficulty

An SSE Airtricity spokesperson said it has a substantial package of supports totalling up to €25 million aimed at helping customers experiencing financial difficulty through the current cost of living and energy crises.

“The measures include a price promise that holds energy costs at June 2022 levels until the end of March 2023, for financially vulnerable customers. This affects around 60,000 customers that are deemed financially vulnerable.

“The SSE Airtricity team have contacted these eligible customers directly to advise them of this available support,” said the spokesperson.

They added that a €1,000,000 discretionary fund also provides direct support to customers in difficulty.

SSE Airtricity team are contacting eligible customers in relation to the scheme, they said,

The company said it has also made a donation of €1 million to the Society of St Vincent De Paul to be used to directly support vulnerable consumers who are struggling with the cost of living.

“This support is not ringfenced to SSE Airtricity customers,” they added. 

In Northern Ireland, an additional £1 million has been donated to Bryson Energy – which the company states is a trusted NI charity partner who will deliver supports in the community.

The company said it is also committed to tackling one of the root causes of energy poverty, by providing improved energy efficiency and heat retention measures for homes.

“With this in mind, we have committed to delivering home energy upgrades for up to 600 vulnerable households across the island of Ireland, at no cost to them,” said the spokesperson. 

While the Government has said that no one should be disconnected this winter, concerns have been raised by pay-as-you-go meters (PAYG) and the threats of disconnection they face. 

In a statement to The Journal, Prepay Power said it has put in place a hardship fund, but the amount in the fund was not specified.

The fund is operated with the assistance of MABS (Money Advice Bureau) “to ensure that it is focussed on those who need it most”, said the company.

No specific fund

Meanwhile, Energia told this website that it does not have a specific customer fund in place.

Instead, the company said it works with individual customers who may be experiencing difficulties on a case-by-case basis to provide support and solutions. 

The company said it recognises “that households and business are experiencing significant challenges. As such, we monitor the supports we provide alongside those provided by Government, and we are actively looking at new support measures on an ongoing basis”.

Pinergy said in its statement that it is at the “frontline of the current energy crisis and understands the financial challenges that rising energy prices are having on our customers”.

“Pinergy customers are uniquely empowered with the latest in smart technologies that allows them to see their energy consumption every day and identify potential areas of energy waste to be addressed.    

Pinergy has processes in place to assist customers on an individual basis that are experiencing challenges with their energy costs. 

“This commitment continues today as we now are putting in place additional measures, resources and supports that will go some way towards alleviating pressures households are facing now and into the winter months,” it said in a statement. 

The energy company said that customers that need assistance should contact Pinergy’s customer service team in the first instance.

“We will do our best through a range of tools, free advisory services and financial supports to assist our customers,” it said. 

‘Bare minimum’

Barry said energy company hardship funds should be a “bare minimum requirement in a decent society”.

Speaking to The Journal, he said hardship funds for big business “are an irritating nuisance overhead expense”.

“It comes as no surprise to me as a socialist that some companies don’t even have one.
This revelation really undermines Government reliance on the ‘engage with your energy provider’ line as an alternative to banning disconnections across the board this winter.

“The case for a total ban is stronger than ever in the light of this information and the case for nationalisation and a not for profit approach is strengthened too,” said Barry.

In the Dáil today, the Taoiseach was told that energy companies should reduce their prices to reflect the drop in gas wholesale prices in recent weeks.

Social Democrat’s co-leader Catherine Murphy said the price of gas on the wholesale market had fallen by more than two-thirds, from its peak in the summer.

However, she said that these savings were not being passed on to the bills that households are receiving.

“The result is that the energy market here is increasingly resembling a cartel,” she claimed.

She also said the number of discounts available for customers have been slashed and discounts they get now are miniscule.

Murphy said that while it is good news that wholesale prices are coming down, it is only good news “if it’s passed on”.

She said the regulator must ensure the savings are passed on to the consumer. 

The Taoiseach said that while the price of wholesale gas is coming down by more than 70% from its August peak, the price of gas for energy companies is largely determined by future prices.

Martin said there is still uncertainty out there, stating that utility companies base prices on future forward contracts and the recent drop in spot prices “may not immediately translate into lower electricity and gas bills for customers”.

 

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