To ask the Minister for the Economy (i) for his assessment of the use of minimum consumption charges by gas suppliers for customers on credit meters; and (ii) whether his Department, in conjunction with the Utility Regulator, intends to bring forward regulation in this area.

Gas customers using a credit meter are subject to a charge for minimum consumption of 1,678 kWh per annum which is applicable on a pro rata basis if average daily consumption over that period is less than 4.6 kWh per day. Gas customers tend to use a relatively small amount of gas between April and October and significantly more during the winter but, as long as a customer’s gas consumption over the year exceeds 1,678 kWh, they will not be charged a minimum consumption fee at any point on their monthly budget plan. The typical household consumption of gas is 12,000 kWh per annum.

Irrespective of the amount of gas customers use, there are fixed costs associated with being connected to the gas network. For example, the costs of maintaining the gas pipelines, meter reading and inspections, I.T. systems for generating customer bills and operating a call centre. The minimum consumption charge is intended to cover these costs.

Given the impact which recent significant price rises have had on the balance of fixed and variable costs, the Utility Regulator intends to review tariff structures, including how certain fixed costs are recouped from customers, as part of a future Forward Work Plan. The Utility Regulator is also liaising with the price regulated gas suppliers to explore solutions in the short term.