Órgano Interno de Control

There are a large number of tariff plans available to domestic and business customers that are provided by electricity and gas suppliers in Ireland. These plans offer customers different tariffs comprised of standing and unit charges. Suppliers

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Source: Eurostat.

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can also offer different rates depending on payment or billing method (e.g. paperless, online, direct debit etc.). All suppliers are required to publish details of the tariff plans that are available to domestic customers. Suppliers of businesses often provide bespoke plans to their business customers and information on such plans is generally not published by suppliers.

In 2013, three suppliers operate in both the electricity and gas market and two of these (SSE Airtricity and Electric Ireland) actively promote bundled dual fuel offers with price discounts for domestic customers that avail of both services from the same supplier. Such dual fuel offers had a significant impact on the market in late 2010 and in 2011; however, the proportion of customers purchasing electricity and gas services from the same supplier stabilised from late 2011 into 2012 and remained at just under 50% from January-September 201224.

The electricity market in Ireland is fully deregulated, therefore the CER no longer regulates electricity prices in the domestic or business markets. In gas, all business market segments are deregulated; however the domestic NDM retail gas market was still subject to price controls in 2013. This means that the incumbent, Bord Gáis Energy had to apply to the CER if it was proposing to change domestic gas tariffs. In September 2013 the CER approved a 2.04% increase in the Bord Gáis Energy tariffs for its residential customers which took effect in October 2013.25 This increase was required due to increases in network tariffs since the previous year. Subsequent to the announcement of the Bord Gáis Energy gas tariff increase, all other suppliers increased gas prices in October 2013. With regard to electricity prices, towards the end of 2013 suppliers announced varied increases with various commencement dates. The following table outlines the price change announcements by each supplier over the past couple of years. These changes relate to the changes to the standard tariff of each supplier26.

Domestic price changes 2011/12 announced change 2012/13 announced change 2013/14 announced change Change Electricity Gas Electricity Gas Electricity Gas27

SSE Airtricity +12.30% +21.20% +4.70% +8.50% +3.5%28 +2%

Bord Gáis Energy _{+12% +21.80% +4.80% +8.50% +2.2%}29

+2.04%30 Electric Ireland _{+14.80% +21.80% +5.90% +8.50% +1.7%}31 +2% Flogas _{Na +21.50% Na +10.20% Na +1.95%} Pinergy Na Na Na Na +1.7%32 Na PrePayPower _{Na Na Na Na +1.7%}33 Na

Table 6.1 Supplier Domestic Price Change Announcements34

24

CER 12/164 Review of Non-Daily Metered Retail Gas Market.

25

CER 13/204 Gas Tariff Review 2013-2014 Bord Gáis Energy’s Residential Gas Customers

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Discounted tariffs are generally presented as discounts off the standard tariff so any change to the standard plan will have a knock on impact on discounted plans.

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All applied in October 2013.

28

Applied in November 2013.

29

Applied in March 2014. Increase due to wholesale price changes & weakened Euro.

30

Regulated price change.

31

Applied in January 2014 along with PSO increase resulting in +3.5% increase.

32 _{Tied to EI tariff.} 33 _{Tied to EI tariff.} 34

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Tables 6.2 and 6.3 identify the annual average bill per supplier (standard and discounted) in domestic electricity and gas in 2013. In order for a customer to accurately compare prices across suppliers, the comparison of the annual average bill (using average consumption values of 5,300kWhs in electricity and 13,800kWhs in gas) across suppliers is the best measure.

Annual Average Electricity Bill, 2013

Supplier Standard Electricity Direct debit & online billing discount plan

SSE Airtricity €1,188 €1,049

Bord Gáis Energy €1,149 €1,051

Electric Ireland €1,179 €1,077

Pinergy €1,31635 Na

PrePayPower €1,31636 Na

Table 6.2 Annual Average Urban 24hr Domestic Electricity Bill per Supplier in 2013 (before end of the year price change announcements), including PSO and VAT and other supplier service

charges as applicable

Table 6.2 above shows that there was not a significant difference in the overall annual average electricity bill for customers on standard plans across suppliers, except in the case of suppliers offering lifestyle choice prepayment meters. Customers of such suppliers can pay over 11% more than credit customers. While this is the case, prepayment meters provide unquantifiable advantages to certain customers wishing to manage their energy use throughout the year. Customers also state that not receiving unexpected bills is an advantage of having a prepayment meter37. Savings can be made by customers switching from a standard plan to a direct debt/online billing discounted plan.

In gas, Flogas offered the cheapest tariffs to customers in 2013.

Annual Average Gas Bill, 2013

Supplier Standard Gas Direct debit & online billing discount plan

SSE Airtricity €969 €937

Bord Gáis Energy €961 Na

Electric Ireland €961 €912

Flogas €955 €837

Table 6.3 Annual Average Domestic Gas Bill per Supplier in 2013 (before October 2013 announcements), including Carbon Tax and VAT

Price comparison websites are useful tools for customers to compare prices across suppliers. CER has an accreditation framework which reviews the energy price comparison service provided by websites and only accredits if the site meets defined standards for accuracy, transparency and reliability. Ireland’s second price comparison website was accredited in 2013: www.uswitch.ie (accredited in May

35

Includes additional daily supplier prepayment service charge.

36

Includes additional daily supplier prepayment service charge.

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2013). In addition the CER undertook an audit of the Bonkers.ie price comparison website in 2013.