Moratorium on electricity and gas disconnections to be lifted next month
The Commission for Regulation of Utilities (CRU) has today announced that it will lift the moratorium that has been in place on the disconnection of gas and electricity customers for non-payment on 1 June 2021.
This moratorium was put in place in January and was designed to provide protection for customers for the duration of the COVID-19 restrictions.
Since March 2020, an upward trend in debt levels has emerged and the CRU states that long-term debt may be a challenge for both customers and suppliers. A proportion of customers are remaining in debt with their energy suppliers for longer which, in effect, stores up the problem for customers to a later date.
The CRU believes that the lifting of the moratorium in advance of the warmer summer months where energy consumption is traditionally lower, will provide further scope for customers to engage with their suppliers and help to bring any arrears to manageable levels.
In addition to this, the extended notification period before the lifting of the moratorium is designed to provide an increased window for suppliers and customers to fully engage and put in place appropriate debt payment plans.
Commenting on the announcement, CRU Chairperson Aoife MacEvilly said:
“The moratoriums that have been in place since March of last year have served to provide an additional layer of protection to gas and electricity customers at a difficult time. As the Covid restrictions ease and society and the economy opens up again, the time has come to revert to the standard high levels of protection of that exist for customers. This will help avoid increasing customer debt.
“We encourage customers to get in touch with their supplier as early as possible if they are experiencing difficulty in paying bills or wish to establish their eligibility to register as a vulnerable or priority customer. We also recommend that customers submit regular meter readings to their energy supplier. The CRU will continue to monitor the market to ensure that customers are given the full protections as set out in the supplier handbook.
“Under these, all customers must be offered a reasonable and affordable debt recovery option which takes account of the individuals’ circumstances. This could be a payment plan or a pre-payment meter. Customers that engage and take one of these options will not be disconnected.”