BORD GÁIS ENERGY (BGE) has poured cold water on demands that it rebrand its domestic energy business, saying that the costs of doing so would inevitably have to be passed on to customers, according to RTÉ News.
In a statement this morning, BGE said that demands from the Commission for Energy Regulation that both BGE and the ESB rename customer divisions were not needed, arguing that Ireland had experienced one of the highest rates of customers switching energy providers anywhere in the world in the last 18 months.
This level of customer mobility proved that a rebranding of some of the main names in the market was not needed for customers to find the best value.
The statement also complained that the rebranding demanded of it was not required under appropriate EU directives, saying that ”as a new entrant to the electricity market, the company established the Bord Gáis Energy brand a little over 18 months ago and is well versed in the cost of such an exercise.”
The company had last month estimated that the cost of the rebranding would reach €40m each for itself and ESB, with €20m for rebranding itself and €20m for advertising to work on brand awareness,
At the time, chief executive John Mullins told the Irish Independent that British Gas was able to lose its market monopoly in the UK without having to rebrand – proof that such costs simply were not needed.
Labour TD Liz McManus said it would be “crazy” to ask ESB and BGE to shoulder €40m in costs each at the same time that thousands of customers were being disconnected over unpaid bills.
To embed this post, copy the code below on your site
have your say