The functions of the CER have been extended to include LPG safety. With effect from 27th June 2011, it will be illegal for any person other than a Registered Gas Installer (RGI) to carry out work on an LPG domestic installation. In addition, any person in breach of the law may be subject to fines of up to €15,000 and/or a prison term of up to three years on conviction.

To become a RGI, persons must meet the requirements for registration as set out by the Register of Gas Installers Ireland (RGII) including holding gas safety certification and appropriate insurance. RGIs are also subject to regular audit, inspection, and ongoing competency assessment by the RGII.

“Bringing the regulation of LPG Works within the scope of CER’s safety function is a positive move for both the LPG industry and for consumers,” says Minister for Communications, Energy and Natural Resources Pat Rabbitte TD.

The RGI scheme aims to raise safety standards by ensuring only competent installers are allowed carry out certain categories of gas works. Only a RGI can guarantee that gas works carried out meet the relevant Irish Standards and he/she must issue a Certificate to customers which will provide assurance that the work is safe.

The Register of Gas Installers Ireland (RGII), on behalf of the Commission for Energy Regulation (CER), has operated a successful scheme for natural gas installers since June 2009. The scheme now extends to LPG installers, service and repair engineers.

The Commission for Energy Regulation has decided to implement a debt flagging facility within the Irish gas and electricity market to alert energy companies when customers wishing to switch suppliers already have outstanding energy bills. The flagging mechanism will apply to domestic gas or electricity customers owing €250 or more for over 42 days, and for small businesses owing €750. A figure for medium-sized enterprises has yet to be finalised. Large energy users are not included in the new regime.

The new system, designed to address concerns about ‘debt hopping’, will help energy suppliers to choose whether to or not to take on a new customer with existing debt.

The CER has been concerned that in the current difficult economic climate, customer and industry debt levels are being exacerbated by some customers’ changing supplier in order to avoid paying their arrears or to avoid a pending disconnection. Debt hopping, and indeed the high general level of debt, is acknowledged as a serious issue for the industry raising costs for suppliers and ultimately for all consumers.

The CER had considered introduction a blocking option but concluded that the flag is more consistent with an open market for both the gas and electricity retail markets.

The implementation of a flag will continue to facilitate customer choice but also empowers the energy supplier to make a commercial decision about whether they will take on a customer with existing arrears. This measure supports suppliers in undertaking appropriate risk assessment as part of the customer acquisition process.

The CER is of the view that the flag should restrict the practice of deliberate debt hopping by customers, providing an appropriate incentive for customers to address their arrears with the existing supplier and increased protection for suppliers.

The new system will be monitored on an ongoing basis by the CER and a will also be subject to a 12 month review by October 2012.

Bord Gais Energy has welcomed the announcement by the Commission for Energy Regulation (CER) that it will deregulate the small and medium business segments of the gas market on October 1st 2011. This announcement means that the small and medium business gas market will be fully liberalised from that date and that the CER will no longer set or approve tariffs for small business gas customers.

The ‘Roadmap for Deregulation in the Non-Daily Metered Retail Gas Market’ also states that, while the CER will carry out a further review of the roadmap for the residential sector later in the year, Bord Gais Energy will remain as a regulated supplier until its market share has fallen to at least 60%. No decision has been made at this stage concerning retention of the Bord Gais Energy brand.

“We welcome the CER’s decision to deregulate the small and medium business segments of the gas market. This is good news for small and medium business customers as it means that from the 1st October 2011, Bord Gais Energy will be able to compete on an equal basis for the first time and offer improved products and services to our business customers,” says John Mullins, chief executive of Bord Gais.

John Mullins, chief executive of Bord Gais.

Bord Gais also welcomes the Commission for Energy Regulation’s commitment to review the roadmap for deregulation of the residential sector later this year. The energy provider would like to see full deregulation take place as quickly as possible but is encouraging the CER to take account of progress in the dual fuel market such as the bundling of gas and electricity products.

John Mullins comments: “We are disappointed at the indication from the Commission that Bord Gais Energy’s market share threshold for deregulation of the residential sector will almost certainly be 60% or lower, before we are allowed compete on equal terms with other suppliers. We have pointed out on many occasions that the gas market is radically different to electricity, particularly in terms of ease of entry for competitors. We would like to see full deregulation take place as quickly as possible.”

He continues: “We also remain of the view that any requirement to rebrand Bord Gais Energy’s retail business is unnecessary. Rebranding is a costly exercise and in the current environment, with price rises looming on the back of significant increases in international wholesale prices, we believe this is an unnecessary expense which will ultimately be borne by the customer. The Bord Gais Energy brand is a valuable asset; it does not impede the proper functioning of the market and therefore it is not in the shareholder or consumer interest to replace it.”

The Commission for Energy Regulation (CER) has published the results of its second annual electricity retail market consumer survey. This survey was commissioned by the CER in order to understand the attitudes and experiences of domestic (ie residential) customers in the Irish retail electricity market.

The survey was undertaken in early 2011. The results will be used by the CER to inform its policy-making in the area of competition and consumer protection.

Overall, the CER survey found that electricity customers in Ireland are very aware of the competitive retail marketplace and have switched supplier in very high numbers. Almost 1 in 3 customers surveyed said they switched electricity supplier in 2010, so they would have availed of price discounts.

The high switching rate indicates that ‘value for money’ is now paramount for electricity customers in this difficult economic climate. The survey also confirmed that customers continue to have a positive experience of the straightforward supplier switching process. In particular, the survey found that:

* The level of awareness of the three main electricity retail supply companies – ESB Customer Supply (now ESB Electric Ireland), BGE and Airtricity – has reached sufficient levels to support competition, with a majority of consumers able to recall two suppliers without prompting.

* Over 29% of consumers stated that they had switched electricity supplier during 2010. This tallies well with the reality – since early 2009 over 850,000 customers, about 40% of all electricity customers in Ireland, have switched supplier. This is one of the highest switching rates ever seen in Europe. It shows that the market is delivering real choice for electricity customers, allowing them to avail of new products and price discounts.

* 94% of consumers who switched stated that saving money was an important factor in switching.

* 97% of switchers found the process easy, with a similar percentage stating that the changeover process went smoothly.

* 68% of consumers stated that they understand how the total amount on the electricity bill is calculated and 75% stated that the bill is easy to understand. However, 63% of consumers would find a comparison with the previous month’s electricity usage printed on the bill useful, and a similar percentage would find monthly cost comparison figures useful.

* 71% of consumers agreed that electricity advertising was straightforward – 61% stated that the advertisements were clear on prices and 58% stated that they were clear on the conditions.

* 5% of respondents reported having made a complaint over the previous 12 months; while 50% were satisfied with both the handling of complaints and the time taken by electricity supply companies to deal with complaints. It should be noted that any complaints to suppliers which customers are not satisfied with can be referred to the CER for resolution.

* 31% of consumers stated that they were interested in prepayment of their electricity usage. Among consumers currently in arrears, this increases to 47%; 70% of all respondents rated avoidance of unexpectedly large bills as an important benefit of prepayment.

Customer protection in the newly competitive and de-regulated electricity market is of paramount importance and while the survey shows a very positive experience for consumers overall, the CER is taking steps to ensure that this is sustained. Therefore the CER has recently published its decision on a range of new customer initiatives, to include customer education campaigns, the provision of detailed consumption information and tariff comparison facilities to empower all customers to benefit from increased competition.

Since April 4th 2011 ESB Electric Ireland has been free to set its own electricity prices for domestic customers, without prior regulatory approval. This means that the electricity market in Ireland is now fully de-regulated.