The energy regulator is to probe an electricity supplier for claiming upcoming hefty price increases were regulator-sanctioned and “unavoidable”.
The Commission for Regulation of Utilities (CRU) said it would investigate the claims by Energia to see if they were misleading or breached the customer code of conduct.
Energia’s price rise on October 9th will add on average €200 to an annual household bill, far more than the CRU has indicated it will require.
Energia’s explanation, published on the company website, was brought to the CRU’s attention by Social Democrats TD Jennifer Whitmore.
She told a CRU delegation at a meeting of the Oireachtas Committee on Climate, Environment and Energy on Wednesday she found the company’s tactic “offensive”.
She read from its explanation, which said: “While Energia has worked to minimise the impact on customers, these price changes are now unavoidable due to ongoing, substantial increases in electricity system operator and network charges.
“These regulatory-approved, non-energy charges, which are applied to electricity suppliers, are required to recover the costs of ensuring security of supply, addressing network constraints and investing in the electricity grid.”
The CRU, in its most recent price review, indicated it would sanction an increase of around just €16 annually in ‘non-energy charges’ to assist with grid improvements.
“I find that offensive, that they are actually trying to sell their price increases to customers by essentially blaming improvements in the grid and network security,” Ms Whitmore said.
Committee chair, Fine Gael TD Naoise O’Muirí, added his concerns.
“A company that you regulate is effectively blaming you for a much larger price increase that cannot be substantiated,” he told CRU chair Jim Gannon.
Mr Gannon undertook to raise the issue with Energia and question the rationale for the price increase.
Energia has been contacted for comment.
The company is one of several to announce price increases at a time when energy bill arrears are at what the CRU said were “historically high levels”.
Just under 300,000 households are in electricity arrears and more than 183,000 in gas arrears.
The regulator also updated the committee on the long-awaited decision on the future of new data centres, signalling a potential delay.
Restrictions on the connection of data centres to the electricity grid have effectively acted as a moratorium on new development since 2021.
They were introduced because of the enormous strain data centres were placing on the electricity supply, particularly in built-up areas.
A new policy setting out where and how data centres may set up was thought to be imminent.
However, the meeting heard there were over 80 submissions from interested parties to analyse.
“The anticipated publication date is therefore subject to fully addressing the complexity of the detailed submissions received,” Mr Gannon said.