The energy regulator has retained measures aimed at helping those struggling in the face of rising electricity and gas prices in place for the winter months ahead.
The Commission for Regulation of Utilities (CRU) also published research which showing that arrears levels are trending at historically high levels, both in terms of the value of arrears levels overall and the average value of a customer’s account in arrears.
While price reductions have taken place and the expectation that more reductions will follow, domestic electricity and gas tariffs remain higher than they were in January 2021, meaning that continued additional supports for customers are necessary, it said.
Among the measures to remain in place are will be a 10 per cent maximum on debt repayment on Pay-As-You-Go Top-Ups and automatically applied discounted tariffs for customers on so-called financial hardship meters.
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Suppliers will still be required to offer customers more flexible payment plans, extended to a minimum of 18 months for this year instead of 24 months to encourage greater engagement by customers with suppliers.
They will also have to actively promote the vulnerable customer register and the protections it offers, promote how customers can have a “nominated representative” manage their account, and how customers can sign-up for level payment plans.
The disconnection moratorium for registered vulnerable customers will remain in place from November 1st until the end of March next year while the winter disconnection moratorium for all other domestic customers will be in place from December 9th until January 17th.
The CRU monitored the effectiveness of the additional customer protection measures through an analysis of the data submitted by suppliers and network operators, under the CRU’s retail market monitoring activities.
In addition to high levels of arrears it has found that while moratoriums provide customers with protection from disconnection during the winter, in addition to longer repayment periods, it discourages some customers from engaging with their supplier in terms of reducing their debt and this does not benefit customers in the medium term as debt levels can continue to increase.
There have been three Government electricity credit schemes since March 2022, which have reduced the domestic electricity arrears levels during this continued period of very high prices.
Should these schemes be discontinued and no further supports for domestic electricity customers be made available, it is probable that arrears levels will see a further significant increase, the CRU warned.
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