BY JOHN ELLIS, FINANCIAL ADVISOR
There has been a significant rise in utility arrears among households and businesses according to the Commission for Regulation of Utilities (CRU).
The CRU is Ireland’s independent energy and water regulator and its latest figures highlight a troubling increase in the number of consumers struggling to pay their energy bills, reflecting the broader challenges posed by the ongoing cost of living crisis.
In March 2024, the percentage of domestic electricity customers in arrears stood at 10%, a slight decrease from 11% in February. This reduction followed the allocation of the third and final Government electricity credit of €150.
Despite this temporary relief, the overall arrears situation is still critical. Gas arrears are even more concerning with 25% of household gas customers in arrears surpassing the earlier peak during April to August 2023 when inflation was at its highest.
The commercial sector is also feeling the strain. Non-domestic electricity customers in arrears rose to 17% in March up from a peak earlier last year. Although there was a slight decrease in the percentage of business customers in arrears on gas bills — down to 28% from 30% in February — the figures are still worryingly close to the peak of 31% seen last July.
Unfortunately, the financial strain has led to a rise in the number of disconnections. In March alone 103 households and 34 businesses had their electricity cut off, while 218 households and 13 businesses faced gas disconnections, highlighting the severe impact of arrears on households and business.
According to the CRU’’s website its mission is to “ensure secure, sustainable, and high-quality energy and water supplies for all customers”.The CRU focuses on protecting vulnerable customers but the recent surge in arrears presents a significant challenge.
Aoife MacEvilly of the CRU emphasised the regulator’s commitment to customer protection and engagement through empowering customers with information about their rights and offers a dispute resolution service for unresolved issues with energy companies or Uisce Éireann.
Despite these efforts, there is growing frustration over the CRU’s decision not to publish the total arrears owed. Sinn Féin’s Senator Lynn Boylan has been particularly vocal about this issue arguing that without knowing the financial scale of the problem it will be difficult to fully understand and address the crisis. “I am deeply disappointed that despite a commitment from CRU to publish the amount of arrears, they have declined to do so,” she said.
Addressing the arrears crisis will require a multifaceted approach. The CRU must balance its regulatory responsibilities with the immediate needs of consumers facing financial difficulties. Therefore, they should be more transparent about arrears as it would foster greater public trust and enable more targeted support measures.
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