Householders overcharged by ESB to subsidise big businesses’ electricity bills will get their money back, an Oireachtas committee has heard.
Commission for Regulation of Utilities chairperson Aoife MacEvilly said in front of an Oireachtas committee they decided last year to pay back to domestic customers. The scheme customers were overcharged for saw big businesses’ electricity bills being subsidised in a time of economic crisis between 2010 to 2022.
However, it has emerged that ESB Networks have made what Ms MacEvilly called “an administrative error". "Domestic bills were being charged more than we had directed," she said, adding that larger energy users have benefited from this.
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"The only question now is final reconciliation and how we will reverse that," she told the Joint Committee on Environment and Climate Action. The CRU chairperson was also asked about the total cost of the scheme, with Sinn Fein Senator Lynn Boylan noting that figures up to €600m have been mentioned.
Social Democrats’ Jennifer Whitmore TD also asked how "a State entity misconstrued your direction to the point that they were overcharging for 12 years", and "how it took so long for it to be recognised".
The energy regulator chairperson also revealed CRU remains "very concerned at the impact of high energy prices on households and businesses". The electricity credit has helped to reduce customer debt, she noted, and there has been a 30 per cent increase in registered vulnerable customers who are entitled to increased supports.
Ms MacEvilly also revealed the CRU will put in place the new Public Service Obligation levy "in the coming weeks", a measure she said would help customers. The rate is calculated annually, and has been reduced to zero as of October.
All customer protection measures will continue to be kept under review as high costs are expected to continue, she said. While Government attempts to increase energy security have had "a positive impact", the “volatile” market could see a reverse of some of these gains in the case of a “prolonged period of adverse weather”.
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