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From:Department of Climate, Energy and the Environment

Minister O'Brien has welcomed the publication of a newFinancial Penalty Frameworkby the Commission for Regulation of Utilities (CRU), which will strengthen regulatory sanctions and protect energy customers. The framework sets out how the regulator may calculate financial penalties where regulated energy entities engage in improper conduct. Regulated energy entities include electricity and gas suppliers, network operators and interconnector operators.

The framework is intended to act as both an enforcement tool and as a deterrent to protect energy customers, promote compliance, and support trust in regulated energy markets. Under the relevant legislation (Electricity Regulation Act 1999), the CRU may, where appropriate, impose administrative sanctions up to and including financial penalties of up to 10% of a regulated energy entity’s turnover, subject to confirmation by the High Court. Factors that may be considered when calculating a financial penalty, include: the seriousness and duration; the impact on customers; any financial benefit obtained; and any steps taken by the entity to address or mitigate the issue.

Examples of improper conduct could include: inaccurate or misleading information; breaches of customer protection standards; or other conduct that may directly or indirectly harm customers – particularly vulnerable customers.

Commenting, Minister O'Brien said:

"Ensuring that we have robust protections in place for energy consumers – particularly vulnerable customers – is a key priority for me, and for my department. Today's announcement by the CRU is another welcome development, which will help to safeguard households and foster trust in our regulated energy markets.

"Customer protection is an important element of the forthcoming National Energy Affordability Action Plan. The National Energy Affordability Taskforce, which I chair, is currently working intensively to prepare an Action Plan. The Action Plan will be structured around four key pillars - Tackling Energy Poverty; Energy Affordability for Businesses; Addressing the Price of Energy; and Sustainable Demand and Flexibility. I intend to bring the Action Plan to government next month.

"I have engaged, and will continue to engage, with the CRU to ensure that the resources and legislative basis are in place to underpin robust customer protection. As Minister, I have also met with the largest energy [electricity and gas] suppliers – to ensure that the necessary supports and protections are in place – and I will continue this engagement. It should also be noted that suppliers – through the Energy Engage Code – commit to not disconnecting any customer in difficult circumstances who engages with them."

The decision paper published by the Commission for Regulation of Utilities (CRU) setting out how it will determine financial penalties where regulated energy entities engage in improper conduct is available at this link:CRU Compliance and Enforcement Policies | CRU.ie.