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Eamon Ryan Advises Electricity Customers To Switch

  • 02-09-2010 12:18pm
    #1
    Fnergg
    Registered Users, Registered Users 2 Posts: 270 ✭✭


    I could scarcely believe my eyes when I read this today:

    http://www.independent.ie/national-news/ryan-advises-customers-to-save-money-by-leaving-esb-2321354.html

    If ever there was evidence that Eamon Ryan is hopelessly out of touch with ordinary people this is it.

    He must know as Energy Minister that thousands of unbanked customers with ESB do not have the option of switching as they (a) do not have a bank account and thus cannot pay by direct debit and (b) they will therefore be charged a €300 deposit by Bord Gais and Airtricity.

    These are the very people who would benfit the most from a price reduction but they cannot avail of it because of the Government's/Regulator's policy in relation to competition in the electricity market.

    That policy is essentially: force the ESB to keep its prices higher than its competitors so that customers will switch to BG/Airtricity. The customers who are switching are those who can avail of the direct debit requirement or can pay the €300 deposit. Those who can't have to stick with the ESB and pay the higher prices.

    An elderly unbanked woman in Mallow was disconnected by Airtricity a couple of weeks ago because she did not pay the deposit (even though her bill was paid up to date). She had switched to Airtricity on foot of a visit by one of that company's door to door salespeople who evidently promised her the sun, moon and stars but conveniently neglected to point out that unless she had a bank account she'd be liable for a €300 deposit. She has since returned to the ESB suitably chastened by her experience of switching. I'm sure she'd love to tell Eamon Ryan of her experience.

    Ryan could simply instruct the Regulator to lift the price regulation on the ESB now and this would hopefully free the way for the ESB to reduce its prices for all its customers.

    Meanwhile, we have a Green Minister for Energy and a Regulator who evidently do not care a fig for the huge unbanked section of society who are struggling to pay their ESB bills and who cannot switch because of the €300 deposit requirement.

    Regards,

    Fnergg
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