New framework to tighten regulatory sanctions to protect energy customers
The Government have welcomed the publication of a new Financial Penalty Framework, which will strengthen regulatory sanctions and protect energy customers.
This new framework is intended to act as an enforcement tool and a deterrent to protect customers, encourage compliance and build trust in energy markets.
The Commission created the framework for Regulation of Utilities (CRU), and under legislation, the CRU may impose administrative sanctions, which include penalties of up to 10% of the energy entity's turnover.
When considering a financial penalty, certain factors need to be brought into account. These include: the seriousness and duration, the impact on customers, any financial benefit obtained and any steps taken by the entity to address or mitigate the issue.
Some examples include inaccurate or misleading information, breaches of customer protection standards, or other conduct that may harm customers.
Minister Darragh O’Brien said: “Ensuring that we have robust protections in place for energy consumers – particularly vulnerable customers – is a key priority for me, and for my department. Today's announcement by the CRU is another welcome development, which will help to safeguard households and foster trust in our regulated energy markets.
"Customer protection is an important element of the forthcoming National Energy Affordability Action Plan. The National Energy Affordability Taskforce, which I chair, is currently working intensively to prepare an Action Plan. The Action Plan will be structured around four key pillars - Tackling Energy Poverty; Energy Affordability for Businesses; Addressing the Price of Energy; and Sustainable Demand and Flexibility. I intend to bring the Action Plan to government next month.
"I have engaged, and will continue to engage, with the CRU to ensure that the resources and legislative basis are in place to underpin robust customer protection. As Minister, I have also met with the largest energy [electricity and gas] suppliers – to ensure that the necessary supports and protections are in place – and I will continue this engagement. It should also be noted that suppliers – through the Energy Engage Code – commit to not disconnecting any customer in difficult circumstances who engages with them.”