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Introduction

Customer Protection - The Role of Regulation Cathy Mannion Director of Electricity Networks & Retail Commission for Energy Regulation 7 th February 2011. Introduction. The CER is the independent body overseeing the regulation of Ireland's electricity and gas sectors Our Role:

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Introduction

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  1. Customer Protection -The Role of Regulation Cathy Mannion Director of Electricity Networks & RetailCommission for Energy Regulation7th February 2011

  2. Introduction The CER is the independent body overseeing the regulation of Ireland's electricity and gas sectors Our Role: Protect the interest of final customers Ensure a reliable, secure, high quality and sustainable energy supply at competitive prices Ensure that consumers benefit from the introduction of competition in the energy sector

  3. Impact of Regulation Regulation has delivered benefits to fuel poor through: • Competition in the retail market • Lower prices & Service innovation • Customer protection measures • Cost of disconnection • Improved codes of practice • Proposed customer education campaigns • Providing pre-payment options • Manage consumption • Manage costs

  4. Competition • Competition in the domestic market since 2009 • Delivering real cost savings • Service innovation – dual fuel • Success demonstrated by high switching rates • Free Electricity Allowance • Roadmap to Deregulation • Full competition in the domestic market • Market Monitoring • Pending consultation to develop an effective market monitoring framework

  5. How to Switch Step 1: Get your Meter Point Registration Number • Your MPRN is on your bill and your meter Step 2: Make price comparisons • Knowing your consumption will help you choose the right tariff • Be sure to examine the fixed and variable elements Step 3: Choose your new supplier Step 4: Contact the supplier directly • Your new supplier will take care of all necessary arrangements Step 5: Read and understand the terms &conditions

  6. Customer Protection The CER require suppliers to put in place the following codes of practice to protect customers: • Marketing • Billing • Vulnerable customers • Complaint handling • Disconnection • Pre-payment metering (including budget controllers)

  7. Customer Protection CER developing further Customer Protection measures for the Deregulated Electricity Market • Customer Education Campaign • Price Comparison Tools • Doorstep Checklist • Annual Statement (price comparison and consumption) • Communications with Customers • Definition of vulnerable customers

  8. Pre-Payment Options Market Developments on pre-payment options • 22,000 installed budget controllers installed • + 17,500 units for customers in financial hardship • Costs of the installation and recalibration to be socialised • Decision on CoP guidelines for how these units will be allocated to customers • Alternative options to increase pre-payment meters • Roll out of smart meters with full pre-payment functionality?

  9. Electricity Disconnections Total Monthly Completed Electricity Disconnections for Non-Payment Aug‘09 – Dec’10 Monthly split by customer type is approximately 20% business: 80% domestic

  10. Disconnections • All electricity suppliers are required by the CER to: • Put in place a Code of Practice on disconnection • To inform customers in advance of any disconnection including information on the costs to them • To work with third parties acting on behalf of customers, such as MABS or St. Vincent de Paul • To enter into payment plans where needed and offer pre-payment meters/budget controllers where appropriate

  11. Disconnections • Suppliers must use disconnection as a last resort only • all other options to be exhausted • All electricity suppliers are required by the CER to provide further protection for Vulnerable Customers: • Elderly customers cannot be disconnected during winter • Customers dependent on electrically powered life-supporting equipment cannot be disconnected at any time • These customers must register their requirements with their supplier

  12. Disconnection Process The CER recently revised the code to ensure suppliers: Confirm a customer’s payment plan in writing within one week of making a plan Refer to MABS / St. Vincent de Paul if circumstances warrant it. Make 2 attempts to contact customer by phone and 2 in writing – This is the minimum requirement Increase the mandatory notice of disconnection from a minimum of 7 to 14 business days notice.

  13. Disconnection Process Continued: • Set disconnection notificationsout on the bill • Any additional administrative costs/ cancellation fee to be highlighted • Maintain a record of all steps taken and considerations made • Report to the CER on a monthly basis. • Use ‘plain English’ in all correspondence • Give a minimum of 10 business days notice in advance of requesting disconnection at premises when there is no account holder registered.

  14. Questions?

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