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An Coimisiún um Rialáil Fóntais Commission for Regulation of Utilities

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Information Paper

Reference: CRU20173 Date Published 23/12/2020

An Coimisiún um Rialáil Fóntais

Commission for Regulation of Utilities

Energy and Water

Monitoring Report for

H1 2020

www.cru.ie


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CRU Mission Statement The CRU’s mission is to protect the public interest in Water, Energy and Energy Safety.

The CRU is guided by four strategic priorities that sit alongside the core activities we undertake to

deliver on the public interest. These are:

• Deliver sustainable low-carbon solutions with well-regulated markets and networks

• Ensure compliance and accountability through best regulatory practice

• Develop effective communications to support customers and the regulatory process

• Foster and maintain a high-performance culture and organisation to achieve our vision

Public/Customer Impact Statement The purpose of this report is to provide consumers, industry and other interested stakeholders with

relevant information on the development of competition in the electricity and gas retail markets, an

overview of the key developments in the water sector and the work of the CRU Customer Affairs

Team in providing a free dispute resolution service to customers.

Market monitoring forms an important part of the CRU’s activities. The information gleaned through

market monitoring helps to inform new policy and aids in the assessment of existing regulations.

The information and analysis provided in this report aims to provide insight into how the electricity

and gas retail markets are functioning and how water services are developing and to highlight any

specific issues that may need to be addressed. As well as information gathered through the

electricity and gas market monitoring framework, the report draws on additional information from

a number of key sources including CRU decision papers, stakeholder inputs, industry discussions,

audit findings and the CRU’s consumer survey.

This document is divided into three main sections, customer engagement and protection, energy

prices, and sectoral developments. Each section aims to give an overview of changes over 2019

period.

For any queries on this report please contact:

• [email protected] for Electricity and Gas

• [email protected] for Water

Revisions

Version Published Update

1 23/12/2020 Report published

mailto:[email protected]

mailto:[email protected]


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Executive Summary – Key Messages

CUSTOMER ENGAGEMENT AND PROTECTION

• In the first half of 2020, Irish Water received 16 domestic customer complaints for every 10,000 customers, which is a 0.16% complaint rate.

• In the first half of 2020, Irish Water closed more complaints than were created resulting in fewer complaints being open at the end of H1 2020 (285) than there were open at the end of 2019 (357). This indicates that for the first half of 2020 Irish Water experienced a lower level of complaints than would be expected at the mid-point of the year based on the figures for previous years.

• For the first half of 2020, the number of interruptions to water supplies are at a similar rate when compared to previous periods. However, as highlighted in the CRU’s recent performance assessment framework report for 2019, there is scope for improvement in this area. For the first half of 2020, Irish Water issued Boil Water Notices for water supplies which served a combined population of over 11,000 people and Water Restriction Notices for water supplies which served a combined population of over 1,000 people.

• In H1 2020, the electricity switching rate was 6.0% and the gas switching rate was 7.2%. Of total switches, 30% were dual fuel switches.

• According to the ACER-CEER Market Monitoring Report (MMR) 2019 published by ACER and CEER in October 2020, in 2019 Ireland had the sixth highest external switching rate for domestic electricity customers of 14%, while in gas it had the fourth highest external switching rate of 18% for domestic customers across European countries reported on.

• The total number of switches completed in the electricity market in H1 2020 was 137,860. This represents a decrease of 14.8% from H1 2019, when 161,833 customers switched.

• The total number of switches completed in the gas market in H1 2020 was 137,860. This represents a decrease of 18.9% from H1 2019, when 63,168 customers switched.

• In addition to switches between suppliers, approximately 6.0% of electricity customers and 7.1% of gas customers renegotiated their contracts with their current supplier in H1 2020. These figures represent a 30.7% and 37.8% increase from H1 2019 in the electricity and gas rates respectively.

• In total, therefore, 12.0% of electricity and 14.3% of gas of customers looked for a better energy plan in H1 2020 through either switching supplier or renegotiating with their current supplier.

• At the of June 2020, 12% of total electricity and 17% of total gas customers were in arrears and 0.50% of domestic electricity customers and 0.36% of domestic gas customers were on payment plans.

• On average more payment plans are completed by electricity and gas customers than broken (Electricity: 56% completed: 44% broken. Gas: 56% completed: 44% broken).

• In H1 2020, there were 531 new PAYG financial hardship meters installed for electricity and 86 for gas. In electricity this represents a 43% decrease from H2 2019 when 939 were installed, and in gas this represents a decrease of 47% from H2 2019 when 163 were installed.

• NPA disconnections of customers decreased by 67% in electricity and by 68% in gas in H1 2020 compared to H1 2019. The total number of NPA disconnections in H1 2020 was 815 for electricity and 302 for gas, representing 0.03% of all electricity and 0.04% of all gas customers in Ireland.

http://acer.europa.eu/Official_documents/Acts_of_the_Agency/Publication/ACER%20Market%20Monitoring%20Report%202019%20-%20Energy%20Retail%20and%20Consumer%20Protection%20Volume.pdf


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• At the end of H1 2020 there were 72,335 electricity smart meters installed.

ENERGY PRICES

• On average the wholesale price of gas was 52% lower in H1 2020 compared to H1 2019.

• On average the wholesale price of electricity was 43% lower in H1 2020 compared to H1 2019.

• Six suppliers announced price decreases in the first half of 2020, based on decreased wholesale costs incurred in previous periods.

• Estimated annual bills (EABs) across suppliers’ standard plans decreased from H2 2019 by an average of 1.2% in electricity and 3.4% in gas in H1 2020, while EABs across suppliers’ best discounted plans decreased by an average of 7.2% in electricity and 6.5% in gas.

• At the end of H1 2020, BE energy offered the cheapest available standard electricity plan with an EAB of €9701. Glow Power offered the cheapest available discount plan for electricity with an EAB of €751.

• At the end of H1 2020, Electric Ireland offered the cheapest available standard plan for gas with an EAB of €755. Bord Gáis Energy offered the cheapest available discount plan for gas with an EAB of €613.

• At the end of H1 2020, Bord Gáis Energy offered the cheapest available dual fuel plan with an EAB of €1,346.

• According to the latest SEAI report on electricity and gas prices, in semester 2 of 2019 (July - December 2019) the weighted average price of electricity to domestic customers in Ireland was above both the EU and the Euro Area weighted averages. The weighted average price of gas to domestic customers in Ireland was above the EU weighted average and below the Euro Area weighted average. Due to the time lag in the publications, the results of the report covering semester 1 of 2020 (January – June 2020) will be included in our next report.

SECTORAL DEVELOPMENTS IN ENERGY AND

WATER

• During the first half of 2020 one new supplier entered the electricity market.

• There were 12 active suppliers in the domestic electricity market and 8 active suppliers in the domestic gas market, while 8 suppliers offered dual fuel.

• In H1 2020, Electric Ireland held the greatest domestic electricity market share with 47.7% of total consumption. This was followed by Bord Gáis Energy with 17.6% market share by consumption, followed by SSE Airtricity with 12.8%, Energia with 9.0%, PrePayPower with 6.9%, Panda Power with 2.6% and Pinergy with 1.3%.

• In the non-domestic markets Electric Ireland remained the largest electricity supplier in terms of consumption in the small business, and medium business market segments in H1 2020. Electric Ireland held the second largest share in the LEU market, with SSE Airtricity being the largest supplier in this segment.

• In H1 2020 Bord Gáis Energy held the greatest market share in the domestic gas market with 43.6% of the market by customer numbers. This was followed by Electric

1 All figures for domestic energy retail bills are inclusive of VAT.

https://www.seai.ie/publications/Price-Directive-2nd-Semester-2019.pdf


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Ireland with 21.4%, SSE Airtricity with 11.7%, Energia with 8.8%, PrePay Power with 7.6%, Flogas with 4.0% and Panda Power with 1.8%.

• In the non-domestic markets Bord Gáis Energy remained the largest supplier in terms of customer numbers in the IC, medium-sized non-domestic gas and LDM gas market segments, while it is the third biggest supplier in the DM market segment with Energia having the largest share in this market segment followed by Electric Ireland.

• In H1 2020, Irish Water provided water services to nearly 1.8 million customers.


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Table of Contents CRU Mission Statement ........................................................................................... 1

Public/Customer Impact Statement ........................................................................ 1

Executive Summary – Key Messages ..................................................................... 2

Glossary of Terms and Abbreviations .................................................................... 8

1. Introduction ...................................................................................................... 10

1.1 Background .......................................................................................................... 10

1.1.1 The Commission for Regulation of Utilities .................................................................. 10

1.1.2 Objectives of this Report ............................................................................................... 10

1.1.3 Related Documents ....................................................................................................... 10

CUSTOMER ENGAGEMENT AND PROTECTION ................................................. 11

2. Energy and Water Customer Care .................................................................. 11

2.1 Customer Complaints to Energy Suppliers ............................................................. 11

2.2 Customer Complaints to Irish Water ..................................................................... 11

2.3 CRU Customer Care Statistics................................................................................ 13

2.3.1 Customer Contacts ........................................................................................................ 13

2.3.2 Customer Complaints .................................................................................................... 15

3. Audits of Compliance ...................................................................................... 18

3.1 Audits of Compliance for Energy Suppliers ............................................................ 18

3.2 Audits of Compliance for Irish Water .................................................................... 19

4. Water Customer Activity ................................................................................. 20

4.1 Quality of Service ................................................................................................. 20

4.1.1 Interruptions to Water Supply ...................................................................................... 20

4.1.2 Boil Water Notices ........................................................................................................ 21

4.1.3 Water Restriction Notices ............................................................................................. 21

4.2 First Fix Free Scheme ............................................................................................ 22

5. Electricity and Gas Customer Switching and Renegotiations ..................... 23

5.1 Electricity and Gas Switching ................................................................................ 23

5.2 Renegotiations of Contracts/Tariffs ...................................................................... 26

6. Energy Bill Management ................................................................................. 28

6.1 Energy Arrears and Payment Plans ....................................................................... 28

6.2 Energy Pay as You Go Financial Hardship Meters .................................................. 31


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6.3 Energy Disconnections for Non-Payment of Account ............................................. 32

7. Energy Smart Meters ....................................................................................... 34

ENERGY PRICES .................................................................................................... 36

8. Retail Energy Prices ........................................................................................ 36

8.1 Calculation of Estimated Annual Bills .................................................................... 36

8.2 Average Estimated Annual Bills Across Suppliers .................................................. 38

8.3 Estimated Annual Bills Over Time ......................................................................... 41

8.4 Electricity and Gas Prices in a European Context ................................................... 43

9. Wholesale Energy Prices ................................................................................ 46

9.1 Wholesale Gas Prices ........................................................................................... 46

9.2 Wholesale Electricity Prices .................................................................................. 47

9.3 Correlation of Wholesale Gas and Electricity Prices ............................................... 47

SECTORAL DEVELOPMENTS ............................................................................... 49

10. Energy Market Developments ......................................................................... 49

11. Electricity Market ............................................................................................. 51

11.1 Domestic Electricity Market Share ........................................................................ 52

11.2 Small-Sized Business Electricity Market Share ....................................................... 54

11.3 Medium-Sized Business Electricity Market Share .................................................. 55

11.4 Large Energy Users (LEUs) Electricity Market Share ............................................... 57

11.5 Electricity Market Concentration .......................................................................... 58

12. Gas Market ....................................................................................................... 60

12.1 Domestic Gas Market Share ................................................................................. 61

12.2 Industrial and Commercial (IC) Gas Market Share ................................................. 63

12.3 Medium-Sized Non-Domestic Gas Market Share ................................................... 64

12.4 Daily Metered (DM) Market Share ........................................................................ 66

12.5 Large Daily Metered (LDM) Market Share ............................................................. 67

12.6 Gas Market Concentration.................................................................................... 68

13. Water Sector ..................................................................................................... 70

13.1 Irish Water Customer Base ................................................................................... 70

13.1.1 Irish Water Customer Breakdown................................................................................. 70

13.1.2 Irish Water Customer Trends ........................................................................................ 70

13.2 Water Consumption ............................................................................................. 71

14. Conclusion ....................................................................................................... 72


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APENDICES ............................................................................................................ 73

Appendix 1 .............................................................................................................. 73

Electricity and Gas Prices in a European Context ............................................................. 73

Annex 1 ................................................................................................................... 77

Overview of Business Electricity Pass Through Costs and Charges for 2019/20 ................ 77

Annex 2 ................................................................................................................... 78

Overview of Gas Pass Through Costs and Charges for 2019/20 ........................................ 78


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Glossary of Terms and Abbreviations

Abbreviation or Term Definition or Meaning

AQ Annual Quantity

BWN Boil Water Notice

CEER Council of European Energy Regulators

CCT CRU Customer Care Team

CRU Commission for Regulation of Utilities

DAM Day Ahead Market

DM Daily Metered

DUoS Distribution Use of System

EAB Estimated Annual Bill

GNI Gas Networks Ireland

GPRN Gas Point Registration Number

GPRO Gas Point Registration Operator

GWh Gigawatt hours

HHI Herfindahl-Hirschman Index

IC Industrial and Commercial

kWh Kilowatt hours

LDM Large Daily Metered

LEU Large Energy Users


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Ml/d Millions of litres per day

MPRN Meter Point Registration Number

MRSO Meter Registration System Operator

MWh Megawatt hours

NDM Non-Daily Metered

NBP National Balancing Point

NPA Non-Payment of Account

NSMP National Smart Metering Programme

PAYG Pay As You Go

PSO Public Service Obligation

SEAI Sustainable Energy Authority of Ireland

SEM Single Electricity Market

SME Small and Medium Sized Enterprises

SPC Supply Point Capacity

TUoS Transmission Use of System

UR Utility Regulator

WRN Water Restriction Notice

WTP Water Treatment Plant


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1. Introduction

1.1 Background

1.1.1 The Commission for Regulation of Utilities

The Commission for Regulation of Utilities (CRU) is Ireland’s independent energy and water

regulator. The CRU was established in 1999 and now has a wide range of economic, customer

protection and safety responsibilities in energy. The CRU is also the regulator of Ireland’s public

water and wastewater system. Our mission is to regulate water, energy and safety in the public

interest.

Further information on the CRU’s role and relevant legislation can be found on the CRU’s website

at www.cru.ie.

1.1.2 Objectives of this Report

The purpose of this report is to provide consumers, industry and other interested stakeholders with




This report analyses trends in a number of key indicators, including prices, consumption, customer

numbers, internal and external switching, pay-as-you-go meters, and disconnections for non-

payment of account, and outlines the key developments in the retail electricity and gas markets.

Additionally, the report presents information on Irish Water’s customer base, excess use of water,

billing, first fix scheme, and quality of service, and customer complaints and contacts received by

the CRU Customer Affairs Team against energy suppliers and network companies, and Irish

Water.

The primary sources of data in this report are: Meter Registration System Operator (MRSO) - ESB

Networks, Gas Point Registration Operator (GPRO) - Gas Networks Ireland (GNI), energy

suppliers, Irish Water, and the CRU Customer Affairs Team.

1.1.3 Related Documents

Information on the CRU’s role and relevant legislation can be found on the CRU’s website at

www.cru.ie

http://www.cru.ie/

http://www.cru.ie/

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2. Energy and Water Customer Care

Summary of Section

• This section contains information on the number of customer complaints received by Energy Suppliers, Irish Water and the CRU Customer Affairs Team.

• Complaints are defined as a customer’s expression of dissatisfaction and refer to the number of valid or invalid complaints made to the supplier regardless of form - letter, email, phone call, in person - during the reporting period. Only complaints requiring some form of explicit follow-up are included (i.e. where follow-up is required whether requested or not). Where a complaint has been resolved in the same reporting period as it had been raised, it is still included in this indicator.

• In the first half of 2020, Irish Water received 16 domestic customer complaints for every 10,000 customers, which is a 0.16% complaint rate. This indicates that for the first half of 2020 Irish Water experienced a lower level of complaints than would be expected at the mid-point of the year based on the figures for previous years.

• In the first half of 2020, Irish Water closed more complaints than were created resulting in fewer complaints being open at the end of H1 2020 (285) than there were open at the end of 2019 (357).

2.1 Customer Complaints to Energy Suppliers

The CRU monitors three sources of energy customer complaints data: customer complaints

received by suppliers, statistics from the CRU Customer Care Team (see section 2.3), and the

CRU Consumer Survey.

The CRU collects data from suppliers on a yearly basis concerning the number of complaints they

received from customers. Data on customer complaints received by energy suppliers during 2020

will be presented in our Annual Energy and Water Monitoring Report for 2020.

2.2 Customer Complaints to Irish Water

Irish Water is obliged to report to the CRU on the number and type of domestic complaints it

receives, in accordance with the CRU-approved Domestic Customer Handbook. Currently, Irish

Water does not report non-domestic customer complaints data in this format to the CRU. However,

this is expected to begin in 2021 and the CRU plans to include this data in future iterations of this

report.

Most complaints received by Irish Water tend to be in customer operations matters including

blockages, reduced water pressure and flooding.

The table below shows the number of domestic customer complaints per 10,000 customers and

the number of complaints as a percentage of total customers. In the first half of 2020 there were

16 customer complaints for every 10,000 customers, which is a 0.16% complaint rate. The number

of complaints is below those seen in the electricity and gas sectors. However, complaints in the

water sector are not as comparable to the electricity and gas sectors, as there is no retail

competition or billing of domestic customers.

https://www.cru.ie/document_group/cer-consumer-survey/

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Customer category 2017 2018 2019 H1 2020

Complaints per 10,000

customers 113 64 68 16

Customer Complaint % 0.64% 0.68% 0.58% 0.16%

Table 1: Complaints to Irish Water per 10,000 Customers

The figure below provides a further breakdown of domestic customer complaints over time. It

highlights that for the first half of 2020 Irish Water experienced a lower level of complaints than

would be expected at the mid-point of the year based on the figures for previous years. Irish Water

closed more complaints than were created resulting in less complaints being open at the end of

H1 2020 (258) than there were open at the end of 2019 (357).

Figure 1: Customer Complaints to Irish Water

10,27810,831

9,230

2,582

n/a

10,610

9,479

2,725

n/a

756 567172391 610 357 285

0

2000

4000

6000

8000

10000

12000

2017 2018 2019 H1 2020

Num

ber

of

com

pla

ints

Complaints created during period Complaints closed

Complaints closed > 60 days Complaints open at end of period

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2.3 CRU Customer Care Statistics

2.3.1 Customer Contacts

A customer contact is any call, email (including webform) or letter received by the CRU’s Customer

Care Team (CCT).

The figure below displays the total number of customer contacts received by the CCT each quarter

(for the past five quarters) per energy supplier.

Figure 2: Volume of Customer Contacts Logged Against Each Energy Supplier

Billing issues and account problems continue to account for the largest percentage of issues

brought to the CCT by energy customers; 63% in Q2 2020. Of the billing issues reported; high bills,

inaccurate bills, catch up bills (stemming from a history of estimated readings), change in tariff and

problems associated with level pay plans were among the main problems outlined by customers.

Marketing and Sign Up accounted for 15% of customer contacts while issues associated with Pay

As You Go (PAYG) meters and Switching issues each accounted for 6% of customer contacts.

The remaining 10% of customer contacts were of a varied nature.

Top 5 Contact Types - Energy Suppliers (Combined) Q2 2020

1 Billing 34%

2 Account Problems 29%

3 Marketing & Sign-up 15%

4 PAYG 6%

5 Switching 6%

Table 2: Breakdown of key issues logged against each energy supplier via customer

contacts

272 230 206 205 163

239221

209 232

153

118

7970 63

49

97

7799 107

97

29

37 5766

4141

28

23

0

100

200

300

400

500

600

700

800

900

Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

Num

ber

of

conta

cts

Iberdrola Panda Flogas Pinergy PrePayPower

Energia SSE Airtricity BGE Electric Ireland

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The figure below displays the volume of customer contacts received in relation to ESB Networks

(ESBN) and Gas Networks Ireland (GNI). Contacts from both ESBN and GNI have been decreasing

since Q4 2019. It is important to consider that ESBN has a much greater customer base that that

of GNI.

Figure 3: Volume of Customer Contacts Logged Against Each Energy Network Company

The main drivers for contacts in relation to ESBN included; metering issues (meter faults, disputed

meter readings), quality of supply (damage caused by voltage surges, power outages) and

connection issues (connection fees, timelines for connection). The remaining 18% of contacts

varied by nature.

Top 3 Contact Types - Electricity Networks Q2 2020

1 Meter Issues 33%

2 Quality of Supply 26%

3 Connections 23%

Table 3: Breakdown of key issues logged against ESBN via customer contacts

The key issues reported by GNI customers related to connections, meter issues (mainly meter

tampering), and customer service. The remaining 23% of contacts varied and included

disconnections and safety issues.

Top 3 Contact Types - Gas Networks Q2 2020

1 Connections 38%

2 Meter Issues 31%

3 Customer Service 8%

Table 4: Breakdown of key issues logged against GNI via customer contacts

60

70 69

55

42

2421

30

19

14

0

10

20

30

40

50

60

70

80

Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

No.

of conta

cts

ESBN GNI

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The figure below illustrates the number of contacts received each quarter in relation to Irish Water.

Irish Water related contacts have been decreasing since Q3 2019.

Figure 5: Volume of Customer Contacts Logged Against Irish Water

Billing and account problems accounted for 52% of Irish Water contacts in Q2 2020. Customer

service issues accounted for 11% while Connection issues and Flow and Pressure issues each

accounted for 9% of contacts. The remaining 19% of contacts were spread across a number of

issues.

Top 5 Contact Types - Irish Water Q2 2020

1 Billing 26%

2 Account Problems 26%

3 Customer Service 11%

4 Connections 9%

5 Flow & Pressure Issues 9%

Table 5: Breakdown of key issues logged against Irish Water via customer contacts

2.3.2 Customer Complaints

The data below looks at complex complaints which were logged by the CRU. A complex complaint

is a complaint referred to CRU for dispute resolution after it has exhausted the internal

supplier/network operator/Irish Water complaints procedure. Further information on Complex

Complaints for 2019 was recently published in the Customer Care Team Annual Report.

The figure below displays the volume of complex complaints logged each quarter in relation to

energy suppliers. Complaints logged against energy suppliers decreased significantly towards the

latter stages of 2019.

72

81

68

62

45

0

10

20

30

40

50

60

70

80

90

Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

No.

of conta

cts

https://www.cru.ie/wp-content/uploads/2020/09/CCT-Annual-Report-2019-Final-September.pdf

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Figure 6: Volume of Complex Complaints Logged Against Energy Suppliers

Complex complaints logged against energy suppliers mainly related to:

• Billing issues (bill shocks/catch up bills as a result of estimated readings)

• Level pay/budget plans

• Arrears management

• General billing errors

Other key issues include account problems, disconnections, switching errors, high charges/tariffs,

contract disputes and issues regarding marketing and sign up.

The figure below displays the volume of complex complaints logged against the energy network

companies. Overall, the volume of complaints escalated to the CRU against ESB Networks and

Gas Networks Ireland remains relatively low.

Figure 7: Volume of Complex Complaints Logged Against Energy Network Companies

68

34

39

3335

0

10

20

30

40

50

60

70

80

Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

No.

of com

pla

ints

8

7

11

4

6

7 7

10

5

3

0

2

4

6

8

10

12

Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

No.

of com

pla

ints

ESBN GNI

17


Complaints against ESBN related to quality of supply, network/sitework charges, customer service,

metering issues and connections. GNI complaints related to meter issues (tampering, faulty

meters), disconnections and customer service.

The level of Irish Water complaints escalated to CRU remains low relative to Irish Water’s customer

base. Complaints received by the CRU mainly relate to customer service, connection issues, and

account problems.

Figure 8: Volume of Complex Complaints Logged Against Irish Water

11

8

3

10

5

0

2

4

6

8

10

12

Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

No.

of com

pla

ints

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3. Audits of Compliance

3.1 Audits of Compliance for Energy Suppliers

The CRU regularly conducts audits of compliance to ensure that suppliers are meeting their

regulatory obligations. The CRU’s Supplier Handbook sets out the minimum service requirements

that suppliers must adhere to in their dealings with energy customers. It comprises of individual

Codes of Practice that cover all key areas of customer-supplier interaction, including: billing,

disconnections, marketing, vulnerable customers and PAYG meters. These rules are in place to

ensure that customers enjoy a high standard of protection in their dealings with licensed suppliers

and are in line with the CRU’s legislative duties2.

The Q1 2020 Spot Check focused on domestic suppliers’ compliance with the Supplier Handbook

- Section 4: Code of Practice on Billing and Section 10: Terms and Conditions of Supply for

Household Customers. In particular, the Spot Check was concerned with suppliers’ energy bills,

Pay As You Go (PAYG) statements, and annual prompts sent by suppliers to customers which

inform them that their fixed-term contracts are coming to an end, or that they have been on a

particular tariff for three years or more.

A summary of the findings and issues identified is set out below:

• The spot check involved evidence-based monitoring and sampling of relevant documents

and other such materials submitted to the CRU by suppliers; the check did not monitor that

all such required information was sent to all customers. 27 individual breaches were

identified across all suppliers who were subject to this spot check.

• For five suppliers (BEenergy, Glowpower, Iberdrola, Panda Power, Pinergy) no breaches

were found.

• For the remaining suppliers there were one or more identified breaches of compliance in

the following categories:

o Bills

o PAYG Statements

o Notifications

Overall, this Spot Check found that most suppliers were compliant with the majority of

requirements. The most significant recurring issue was that there was a lack consistent information

being provided on PAYG Statements. Some suppliers identified issues with the ability to reconcile

the value of customer PAYG top ups with the metered, and billed amounts.

All suppliers were notified of any breaches found against them and provided deadlines in which to

remedy the issues. Different deadlines were provided depending on the nature of the

noncompliance.

At of the time of publication of the Spot Check Information Paper in September, all suppliers have

either remedied the breaches or are working with the CRU to take remedial actions.

The CRU will continue to conduct compliance Spot Checks on a quarterly basis to ensure a high

standard of protection to all energy customers.

The Q1 2020 Spot Check of compliance for electricity and gas suppliers can be found on the CRU

website.

2 S.I. No. 452 of 2004 European Communities (Internal Market in Natural Gas) S.I. No. 60 of 2005 (Electricity) European Communities (Internal Market in Electricity)

https://www.cru.ie/wp-content/uploads/2019/11/CRU19138-Electricity-and-Gas-Suppliers-Handbook-2019-.pdf

https://www.cru.ie/wp-content/uploads/2020/09/CRU20104-Spot-Check-of-Energy-Supplier-Compliance-Q1-2020.pdf

https://www.cru.ie/wp-content/uploads/2020/09/CRU20104-Spot-Check-of-Energy-Supplier-Compliance-Q1-2020.pdf

http://www.irishstatutebook.ie/2004/en/si/0452.html

http://www.irishstatutebook.ie/2005/en/si/0060.html

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3.2 Audits of Compliance for Irish Water

The CRU conducts audits of Irish Water to monitor compliance with the requirements contained in

the Domestic and Non-Domestic Customer Handbooks (CRU/17319 and CRU/18041). The aim of

such audits is to protect consumers by ensuring that Irish Water implements, and adheres to,

processes and procedures which meet the requirements of the Handbooks.

The CRU has, on 30 April 2020, published the first audit of Irish Water following the issuance of

the Boil Water Notices in relation to the Leixlip Water Treatment Plant in October and November

2019. The audit report is available here.

The CRU has, on 29 July 2020, published the findings of its first regularly scheduled Spot Check

on Irish Water, conducted in Q1 2020. The spot check focused on information that Irish Water is

obliged to display or have published on its website at all times.

A summary of the main findings is set out below.

• Contact Details (Domestic & Non-Domestic)

Finding 1 - Irish Water is not in compliance with Section 5.1.2 of the Domestic and Non-

Domestic Customer Handbooks as there is an example of more than one telephone

number listed for the same contact topic. This has the potential to cause confusion for a

customer when deciding which number to dial and was therefore not considered easy to

understand.

• VAT Presentation (Non-Domestic)

Finding 2 - Irish Water is not in compliance with Section 5.1.2 of the Non-Domestic

Customer Handbook as the information provided on the Irish Water website did not make

it clear which water services or non-domestic tariffs or charges were or were not exempt

from VAT. It was therefore not considered easy to understand.

Irish Water was notified of the above two findings and provided timelines by which the issues were

to be remedied.

The CRU will continue to monitor Irish Water’s compliance with its legislative obligations as set out

in the Customer Handbooks as part of its scheduled regulatory compliance work programme. This

will include quarterly spot checks, an annual audit and investigating any ad hoc issues should they

arise.

The information paper of the Irish Water Compliance Spot Check for Q1 2020 is available on the

CRU website.

https://www.cru.ie/wp-content/uploads/2020/04/CRU20052-Leixlip-Water-Treatment-Plant-BWN-%E2%80%93-Irish-Water-Compliance-Audit.pdf

https://www.cru.ie/wp-content/uploads/2020/07/CRU20082-Irish-Water-Compliance-Spot-Check-Q1-2020.pdf

20


4. Water Customer Activity

Summary of Section

• This section contains information on Irish Water’s supply of water to customers and its engagement with customers under the First Fix Scheme.

• For the first half of 2020, the number of interruptions to water supplies were in line with expectations when compared to previous periods.

• For the first half of 2020, Irish Water issued Boil Water Notices for water supplies which served a population of over 11,000 people and Water Restriction Notices for water supplies which served a combined population of over 1,000 people.

4.1 Quality of Service

Irish Water is responsible for providing safe, reliable and clean drinking water to all of its customers.

The following metrics give an indication of how Irish Water is performing in this regard.

4.1.1 Interruptions to Water Supply

The figure below provides information on the number of interruptions to domestic and non-

domestic customers’ water supply. Irish Water reports to the CRU on both the number of planned

and unplanned interruptions. An unplanned interruption is where water supply is unexpectedly and

temporarily stopped. There are roughly 10,000 to 12,000 interruptions each year. As highlighted

by the figure below, the rate (accounting for half a year of data) of interruptions are roughly where

they are expected to be after the first half of 2020 is similar to recent trends, with just over 5,000

interruptions reported. However, as highlighted in the CRU’s recent performance assessment

framework report for 20193, which includes estimates of the number of properties affected by

interruptions, there is significant scope for improvement – “To achieve a similar performance to

water companies in neighbouring jurisdictions during a similar timeframe, Irish Water would have

to reduce the number of properties experiencing an unplanned interruption for greater than 12

hours by a factor of 200.”

Figure 9: Number of planned and unplanned interruptions to customer water supplies

3 https://www.cru.ie/document_group/irish-water-performance-assessment/

9,21810,593 9,862

4,471

298

1,032 2,126

622

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2017 2018 2019 H1 2020

num

ber

of in

terr

uptions

Number of unplanned interruptions Number of planned interruptions

https://www.cru.ie/document_group/irish-water-performance-assessment/

21


4.1.2 Boil Water Notices

A boil water notice (BWN) is a formal notice issued to all properties in an area advising that drinking

water from the public mains is not safe to drink unless it is boiled and cooled beforehand. The table

below provides information on the population served by supplies with a BWN in place.

2015 2016 2017 2018 2019 H1 2020

Population served by supply

placed on a BWN during the

period

22,699 98,431 17,970 97,559 1,304,860 11,453


placed on a BWN during the

period

37,091 101,890 23,291 96,689 1,289,661 13,820


with a BWN at end of period 8,799 5,340 19 899 16,051 13,684

Table 6: Population served by supply with a boil water notice in place

At the mid-point of 2020, Irish Water reported that a population of 13,684 was being served by

supplies with a BWN in place. This is a decrease on the 16,051 served by supplies with a BWN at

the end of 2019. In addition, there has been a reduction in the population served by supplies placed

on BWNs during the period, with over 11,453 affected. Typically, BWNs are issued due to a variety

of reasons including inadequate disinfection, monitoring results failures, source contamination and

adverse weather conditions. The main driver for the large population affected by BWNs in 2019

were the two separate BWNs related to issues with the operation of the Leixlip Water Treatment

Plant (WTP) in October and November 2019 impacting over 600,000 customers on both occasions.

Due to the large number of customers affected by these BWNs, the CRU has conducted an audit

on Irish Water’s levels of compliance with its obligations regarding customer service and customer

protection during a BWN. The CRU published this audit on its website in April 2020 (CRU/20/052).

4.1.3 Water Restriction Notices

A water restriction notice (WRN) is an instruction issued to the public if the water supply within a

certain area is not guaranteed to be at the quality standards required by the European Union

Drinking Water Regulations 2014 and either not safe to drink or use, as boiling it will have no effect

on removing the contaminant. There are several different types of water restriction notices that

may be issued e.g. Do Not Consume Notices are issued where water should not be used for

drinking or cooking but can be used for personal bathing or household cleaning activities etc.

2015 2016 2017 2018 2019 H1 2020

Population placed on a

WRN during the period 1,027 54 212 20,624 8,105 1,026

Population with a WRN

lifted during the period 651 188 347 20,190 8,800 180

Population with a WRN at

end of period 4,219 4,085 3,950 4,384 3,689 4,535

Table 7: Population served by supply with a water restriction notice in place

At the mid-point of 2020, the population served by supplies with a WRN in place was 4,535. This

is an increase on the 3,689 served by supplies with a WRN at the end of 2019. Water restriction

notices can be caused by contamination of the source and problems with chlorine dosing. Some

22


supplies may be affected by lead due to the presence of lead pipework on the customer side. Irish

Water’s Lead in Drinking Water Mitigation Plan aims to reduce the supplies affected by this issue.

The goal of the Mitigation Plan is the removal of all lead pipework.

4.2 First Fix Free Scheme

Irish Water produces 1.7 billion litres of treated water per day, but nearly half of this is lost through

leaking pipes. Irish Water estimate that 20% to 30% of water losses are through customer side

leakage.

To help address this, in August 2015 the CRU approved Irish Water’s First Fix Scheme. This

provides qualifying customers with free leak investigation and repair to their external supply pipe,

thus enabling greater water conservation. Irish Water identifies and prioritises the most significant

leaks first.

The CRU monitors the operation of the scheme through reports submitted by Irish Water. These

include details of number of repairs completed and litres of water saved.

The CRU plans to consult on proposed changes to the scheme which would expand its scope to

make it available to a greater number of customers. As part of this consultation, the CRU will review

the operation of the first fix scheme to date and assess its effectiveness as a leakage reduction

measure over the past six years.

Updated information on the number of leak repairs and water saved due to leak repairs in 2020

will be included in our Annual Energy and Water Monitoring Report for 2020.

23


5. Electricity and Gas Customer Switching and Renegotiations

Summary of Section

• This section contains information on customer engagement with energy suppliers. Switching and renegotiations activity are major areas in which customers directly engage with their energy supplier.

• In H1 2020, the electricity switching rate was 6.0% and the gas switching rate was 7.2%. Of total switches, 30% were dual fuel switches.

• According to the ACER-CEER Market Monitoring Report (MMR) 2019 published by ACER and CEER in October 2020, in 2019 Ireland had the sixth highest external switching rate for domestic electricity customers of 14%, while in gas it had the fourth highest external switching rate of 18% for domestic customers across European countries reported on.

• The total number of switches completed in the electricity market in H1 2020 was 137,860. This represents a decrease of 14.8% from H1 2019, when 161,833 customers switched.

• The total number of switches completed in the gas market in H1 2020 was 137,860. This represents a decrease of 18.9% from H1 2019, when 63,168 customers switched.

• In addition to switches between suppliers, approximately 6.0% of electricity customers and 7.1% of gas customers renegotiated their contracts with their current supplier in H1 2020. These figures represent a 30.7% and 37.8% increase from H1 2019 in the electricity and gas rates respectively.

• In total, therefore, 12.0% of electricity and 14.3% of gas of customers looked for a better energy plan in H1 2020 through either switching supplier or renegotiating with their current supplier.

5.1 Electricity and Gas Switching

This section analyses switching activity in the electricity and gas markets. Switching refers to the

action where a customer changes from one supplier to another. It is measured by the number of

completed switches in a period (not the number of switching requests).

Switching information is critically important in monitoring the effectiveness of competition, the level

of customer engagement in the market and the choices available to customers. Competition in the

electricity and gas markets is driven by engaged customers that look for suppliers offering

attractive products and tariffs.

The total number of electricity customer switches in the first half of 2019 was 161,833, representing

a 7.1% switching rate, compared to 137,860 customer switches in the first half of 2020,

representing a 5.8% switching rate. The number of electricity customer switches in H1 2020 was

14.8% lower compared to H1 2019.

The total number of gas customer switches in the first half of 2019 was 63,168, representing a

9.0% switching rate, compared to 51,201 customer switches in the first half of 2020, representing

a 6.8% switching rate. The number of gas customer switches in H1 2020 was 18.9% lower

compared to H1 2019.

It is considered likely that the year-on-year reduction in switching numbers is at least in part related

to the onset of the Covid-19 health emergency in Ireland in March 2020. Low levels of switching

activity were observed in April, May and June 2020. The number of electricity and gas switches in


24


April 2020 reached the lowest level recorded since December 2013 when there were 16,204

electricity switches (17,843 in April 2020) and 6,308 gas switches (6,141 in April 2020).

The figure below shows the percentage of electricity customers that switch suppliers on a six-

month basis. The electricity switching rate has been very stable since 2015 with a decrease

observed in H1 2020, while the gas switching rate has been a bit more variable and has been at a

high in recent years with a decrease also observed in H1 2020.

Figure 12: Electricity and Gas Switching Rate

The figure below shows the percentage of electricity and gas customers, broken down into

domestic and non-domestic, that switch suppliers on a six-month basis. Switching activity in H1

2020 was lower compared to H1 and H2 of 2019 in all customer categories, with the largest

decrease observed in the non-domestic electricity switching rate. As stated above, it is considered

likely that the lower switching activity observed in H1 2020 is at least in part related to Covid-19.

Figure 13: Electricity and Gas Switching Rate by Customer Group

0%

2%

4%

6%

8%

10%

12%

H12015

H22015

H12016

H22016

H12017

H22017

H12018

H22018

H12019

H22019

H12020

% o

f custo

mers

that

sw

itched s

upplie

r

Electricity Switching Rate Gas Switching Rate

0%

2%

4%

6%

8%

10%

12%

DomesticElectricity

Non-DomesticElectricity

TotalElectricity

Domestic GasNon-DomesticGas

Total Gas

% o

f custo

mers

that

sw

itched s

upplie

r

H1 2018 H2 2018 H1 2019 H2 2019 H1 2020

25


EU Comparison in Switching Rates

The ACER-CEER Market Monitoring Report (MMR) 2019 of the European Union Agency for the

Cooperation of Energy Regulators (ACER) and the Council of European Energy Regulators

(CEER) published in October 2020 detailed the switching rate in Ireland in 2019 in comparison to

other EU countries. Ireland had the sixth highest external switching rate for electricity household

customers of 14%, while in gas it had the fourth highest external switching rate of 18% for

household customers across all EU countries.

Dual Fuel Switching

A dual fuel customer is defined as a site that has both gas and electricity accounts with the same

supplier (whether on a specific dual fuel tariff or not). The 'dual fuel switching' indicator refers to

the number of dual fuel customers (measured by MPRN/GPRN) that switched, either one account

or both gas and electricity, per month.

In H1 2020 there was a decrease in the number of dual fuel switches of 18% from H1 2019. It is

considered likely that the decrease in dual fuel switches is at least in part related to the onset of

the Covid-19 health emergency in Ireland in March 2020. The rate of dual fuel switches, however,

remained at a level similar to previous quarters. The H1 2020 dual fuel switching rate was 30%,

compared to 31% in H1 2019 and it represents a 2.4% decrease. The figure below shows dual fuel

switches as a percentage of total switches.

Figure 14: Dual Fuel Switches as a Percentage of Total Switches

0%

5%

10%

15%

20%

25%

30%

35%

H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020

% dual fuel


26


5.2 Renegotiations of Contracts/Tariffs

Renegotiations (internal switching) refer to situations where a new contract term, tariff or terms &

conditions have been negotiated between the supplier and the customer. The indicator includes

data on the number of successfully completed renegotiated contracts regardless of whether

initiated by the customer or the supplier or of the number of times an individual customer

renegotiated. This indicator does not include situations where a customer renegotiates a payment

plan or automatically defaults to the standard tariff or any other tariff that does not have a time

limited discount or lock in period associated with it.

Renegotiations give some further insight into customer engagement in the retail energy markets

and show that the number of renegotiations is a significant addition to external switching.

While it is considered likely that switching activity in H1 2020 has been at least in part negatively

affected by Covid-19, the case for renegotiations was different.

The figure below shows the rate of successfully completed renegotiated contracts over the year in

both the electricity and gas retail markets for domestic and non-domestic customers. The total gas

and total electricity renegotiation rates are similar. In H1 2020, 6.0% of electricity customers and

7.1% of gas customers renegotiated their contract with their existing supplier. This represents an

increase of 4.4% in the electricity rate and an increase of 12.6% in the gas rate from H2 2019 and

an increase of 30.7% and 37.8% in the electricity and gas rates from H1 2019. The H1 2020

renegotiation rates in both electricity and gas are the highest rates recorded since 2016 when the

CRU started collecting data on this indicator. Non-domestic customers are more likely to

renegotiate, while non-domestic gas customers are the group most likely to renegotiate.

Figure 15: Renegotiation Rate by Customer Group

When the renegotiation rate is added to the switching rate it can be concluded that 12.0% and

14.3% of electricity and gas customers respectively looked for a better energy plan through either

switching supplier or renegotiating with their existing supplier. This represents an increase of 2.6%

in the electricity rate and 1.1% in the gas rate from H1 2019 and a decrease of 6.3% in the electricity

rate and 4.7% in the gas rate from H2 2019. The bi-annual rate of switching and renegotiations

has remained fairly stable during the period.

0%

5%

10%

15%

20%

25%

DomesticElectricity


TotalElectricity

Domestic GasNon-DomesticGas

Total Gas

% o

f custo

mers

that

renegotiate

d w

ith s

upplie

r

H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020

27


The figure below shows the rate of switching and renegotiations.

Figure 16: Rate of Switching and Renegotiations

0%

2%

4%

6%

8%

10%

12%

14%

16%

Total Electricity Total Gas

H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020

28


6. Energy Bill Management

Summary of Section

• This section contains information on energy customers in arrears and on payment plans, new installations of energy pay as you go (PAYG) financial hardship meters and energy customer disconnections for non-payment of account (NPA).

• At the of June 2020, 12% of total electricity and 17% of total gas customers were in arrears and 0.50% of domestic electricity customers and 0.36% of domestic gas customers were on payment plans.

• On average more payment plans are completed by electricity and gas customers than broken (Electricity: 56% completed: 44% broken. Gas: 56% completed: 44% broken).

• In H1 2020, there were 531 new PAYG financial hardship meters installed for electricity and 86 for gas. In electricity this represents a 43% decrease from H2 2019 when 939 were installed, and in gas this represents a decrease of 47% from H2 2019 when 163 were installed.

• NPA disconnections of customers decreased by 67% in electricity and by 68% in gas in H1 2020 compared to H1 2019. The total number of NPA disconnections in H1 2020 was 815 for electricity and 302 for gas, representing 0.03% of all electricity and 0.04% of all gas customers in Ireland.

6.1 Energy Arrears and Payment Plans

The CRU collects data on the number of customers in arrears and on payment plans, including

their value and length.

Arrears refers to the number of customers by market segment that were in arrears at the end of

the reporting period regardless of the value of the arrears.

Total number of customers in arrears and on payment plans in June 2020

Domestic Electricity

Non-Domestic Electricity

Domestic Gas

Non-Domestic Gas

Total

Customers in Arrears

251,508 45,053 113,553 6,533 376,062

% Total Customers in

Arrears 12% 15% 17% 24% 13%

Customers in Arrears >90

Days 119,749 19,809 71,880 2,704 214,142

% Customers in Arrears >90

Days 6% 7% 11% 10% 7%

Payment Plans 10,495 - 2,437 - 12,932

% Total Customers on Payment Plans

0.50% - 0.36% - 0.25%

Table 8: Total number of customers in arrears and on payment plans in June 2020

29


The figure below shows the percentage of customers that were in arrears at the end of each six-

month period. The percentage of customers in arrears has remained fairly stable in the domestic

electricity and total electricity customer categories with 12-14% of customers in arrears at the end

of each six-month period, while the rate has been more variable in the non-domestic electricity and

all gas customer categories. The largest increases between H1 2019 and H1 2020 and between

H2 2019 and H1 2020 are observed in the non-domestic electricity and gas categories. At the of

June 2020, 12.0% of total electricity and 16.9% of total gas customers were in arrears. This

represents a 3% increase in the rate of arrears for electricity and a 13% increase for gas from the

same period last year (H1 2019) when 12.4% of electricity and 15.0% of gas customers were in

arrears.

Figure 21: Percentage of Customers in Arrears by Customer Group

The figure below shows customers that were in arrears for more than 90 days as a percentage of

the total number of customers that were in arrears at the end of each six-month period.

Figure 22: Customers in Arrears for more than 90 Days by Customer Group as a

Percentage of Total Customers in Arrears

0%

5%

10%

15%

20%

25%

30%

DomesticElectricity


TotalElectricity

Domestic Gas Non-DomesticGas

Total Gas

H1 2018 H2 2018 H1 2019 H2 2019 H1 2020

0%

10%

20%

30%

40%

50%

60%

70%

DomesticElectricity


TotalElectricity

Domestic Gas Non-DomesticGas

Total Gas

H1 2018 H2 2018 H1 2019 H2 2019 H1 2020

30


Out of the total number of customers that were in arrears, the percentage of customers that were

in arrears for more than 90 days has increased in all customer categories except for non-domestic

gas. In electricity of those in arrears 48% (119,749) domestic and 44% (19.809) non-domestic

have been so for greater than 90 days. In gas of those in arrears 63% (71,880) domestic and 41%

(2,704) non-domestic have been so for greater than 90 days.

Due to the seasonality of gas usage, it is common for the gas market to have a higher percentage

of customers in arrears.

The option for customers to enter payment plans with their supplier provides an additional measure

of protection to customers who are continuously having difficulty paying their bills.

A payment plan arrangement is a specific payment arrangement with a supplier to cover

outstanding arrears on a customer’s bills. A payment plan can include those arranged to recoup a

debt, regardless of the debt source (i.e. financial hardship, fraud, credit, estimated reads, etc.).

The figure below shows the number of domestic customers in arrears and on payment plans at the

end of June 2020.

Figure 23: Number of customers on payment plans in relation to the number of customers

in arrears

Of those domestic customers in arrears 4% (10,495) of domestic electricity and 2% (2,437) of

domestic gas customers are on payment plans. Compared to the total number of domestic

customers, 0.5% in electricity and 0.36% in gas are on payment plans. This is a relatively low

percentage considering that 6% of domestic electricity and 11% of domestic gas customers are in

arrears for more than 90 days.

The CRU also collects information on the number of completed and broken payment plans for

domestic customers. On average more payment plans are completed by electricity and gas

domestic customers than broken (Electricity: 56% completed: 44% broken. Gas: 56% completed:

44% broken).

1,152 3,323

79,264

21,207

51,343

17,143

119,749

71,880

10,4952,437

0

50000

100000

150000

200000

250000

300000

Domestic Electricity Domestic Gas

Num

ber

of

Custo

mers

In arrears for 0-30 days In arrears for 31-60 days In arrears for 61-90 days

In arrears for >90 days On a Payment Plan

31


6.2 Energy Pay as You Go Financial Hardship Meters

This section looks at the trend in the installation of domestic Pay As You Go (PAYG) financial

hardship meters. Suppliers cannot disconnect for reasons of non-payment of account unless they

have offered a PAYG meter to the customer. In instances where it would not be appropriate to

offer a PAYG meter, such as the customer not being able to use the meter or where there is no

suitable location for the meter in the premises, the supplier must offer an alternative.

Currently Bord Gáis Energy, Electric Ireland, Energia, Flogas, PrePayPower and SSE Airtricity

provide PAYG meters for financial hardship in the electricity and gas domestic markets.

ESB Networks and GNI are responsible for installing PAYG meters free of charge for customers

in financial difficulty at the request of suppliers (on foot of a customer agreeing to the installation

of a meter).

A number of suppliers also offer lifestyle choice prepayment options in the electricity and gas

domestic markets (Bord Gáis Energy, Electric Ireland, Energia, Flogas, Pinergy, PrePayPower and

SSE Airtricity). This is provided in the form of a PAYG meter unit that acts as a budget controller

in series with the existing meter.

Suppliers offering lifestyle choice prepayment meters charge additional daily service charges. This

makes them more expensive than alternatives. Customers considering opting for a lifestyle choice

prepayment meter should consider this additional cost and weigh it against the additional benefits

that the solution may bring them. It is important to note that customers who are experiencing

financial difficulty and avail of a free PAYG meter do not incur any additional charges. For gas,

GNI provides all PAYG meters. If a customer wishes to avail of a lifestyle choice meter in gas this

is purchased from GNI through their supplier. For electricity, the lifestyle choice prepayment meter

is an asset of the supplier rather than ESBN.

The figure below shows that the installation of new domestic electricity and gas PAYG financial

hardship meters decreased from 2015 to 2017 and has broadly levelled off over 2018, 2019 and

H1 2020. In H1 2020 there were 531 new installs of PAYG financial hardship installs in electricity

and 86 in gas, which represent 0.03% and 0.01% of total domestic electricity and total domestic

gas customers respectively. There was a reduction in the installation of new financial hardship

PAYG meters from H2 2019 of 43% in electricity and 47% in gas. This reduction was affected by

the suspension of most PAYG meter installations by ESBN and GNI during the Covid-19 lockdown

period.

Figure 24: Number of New Domestic Electricity and Gas PAYG Financial Hardship Installs

0

2,000

4,000

6,000

8,000

10,000

12,000

H12014

H22014

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H22015

H12016

H22016

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H22017

H12018

H22018

H12019

H22019

H12020

Electricity Gas

32


6.3 Energy Disconnections for Non-Payment of Account

Disconnections refer to the act of interrupting supply of electricity or gas to a site. This includes de-

energisations in electricity and credit locks, disconnected meters and street isolations in gas. This

section analyses disconnections completed for non-payment of account (NPA) purposes only.

The disconnection / de-energisation of a customer’s energy supply due to NPA should always be

the last resort and all suppliers are required to offer a payment plan and/or prepayment solution to

customers in advance of proceeding to disconnect.

The requirement placed on suppliers to offer payment plans and financial hardship meters instead

of disconnecting customers in the first instance has benefited those in financial difficulty. It is likely

that improving economic conditions in recent years has also contributed to a decrease in

disconnections.

The figure below shows that NPA disconnections have fallen over time. Without a PAYG system

in place which provides an option for customers facing difficulty in paying their electricity and gas

bills, disconnections could be significantly higher. In H1 2020 there were 815 electricity and 302

gas disconnections. This represents 0.03% electricity customers and 0.04% of gas customers

disconnected due to NPA, compared to 0.10% electricity customers and 0.13% gas customers

disconnected in H1 2019. The decrease in the number of NPA disconnections in H1 2020 was

largely due to the suspension of disconnections due to Covid-19, with no NPA disconnections

carried out in Q2 2020.

On 16 March 2020, the CRU introduced a moratorium on the disconnection of domestic electricity

and gas customers. This measure was intended to be in place for 2 weeks, but the CRU decided

to retain it until 29 June – a total of 15 weeks. This measure was taken to provide appropriate

protection and reassurance for electricity and gas customers during the period of uncertainty.

Figure 25: Trend in total (domestic and business) NPA disconnections

39863797

4637

22422451

2175

2583

22462492 2516

8151502

2040

1571

1216 1260

884 836 894 941

1483

3020

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

H12015

H22015

H12016

H22016

H12017

H22017

H12018

H22018

H12019

H22019

H12020

Electricity Disconnections Gas Disconnections

33


The majority of disconnections due to NPA in H1 2020 were for domestic customers with 558

electricity customers disconnected. This was a decrease of 73% from H1 2019 when 2,051

domestic electricity customers were disconnected. Non-domestic electricity disconnections were

257 in H1 2020 compared to 441 in H1 2019 representing a 42% decrease. The large difference

observed in the number of NPA disconnections between H1 2019 and H1 2020 is largely due to

the suspension of these disconnections due to Covid-19.

In H1 2020, 0.03% of domestic electricity customers were disconnected due to NPA compared to

0.10% in H1 2019, while 0.09% and 0.15% non-domestic electricity customers were disconnected

in H1 2020 and H1 2019 respectively.

The figure below shows total NPA domestic electricity disconnections per quarter. There were no

NPA disconnections in Q2 2020.

Figure 26: Total NPA Domestic Electricity Disconnections

The case is similar in gas, where the majority of NPA disconnections are for domestic customers

with 233 customers disconnected in H1 2020. This was a decrease of 73% from H1 2019 when

864 domestic gas customers were disconnected. Non-domestic gas disconnections were 69 in H1

2020 compared to 77 in H1 2019 representing a 10% decrease.

In H1 2020, 0.03% of domestic gas customers were disconnected due to NPA compared to 0.13%

in H1 2019, while 0.25% and 0.29% non-domestic gas customers were disconnected in H1 2020

and H1 2019 respectively.

The figure below shows total NPA domestic gas disconnections per quarter. There were no NPA

disconnections in Q2 2020.

0

500

1000

1500

2000

2500

3000

34


Figure 27: Total NPA Domestic Gas Disconnections

7. Energy Smart Meters Smart meters are the next generation of electricity and gas meters. Smart meters work by

communicating with the customer and their energy provider, giving accurate information on actual

energy usage across each day. Smart meters will mean that customers can access more

information enabling the provision of more choice and services from existing and new suppliers,

which would not be possible with the old mechanical meters.

Smart metering is a significant ‘once in a generation’ project that can encourage energy efficiency

and support an increase in renewable power on the electricity system. Ireland’s smart meter

upgrade programme is part of the national Climate Action plan. Smart meters will support Ireland's

transition to a low carbon future by enabling the development of smart grids, and supporting the

electrification of heat and transport, local renewable generation and microgeneration. Using smart

meters will help how we manage peak energy demand, meaning lower overall costs for consumers.

It will also enhance competition and improve consumer experience.

The CRU, working closely with the Department of Communications, Climate Action and

Environment, established the National Smart Metering Programme (NSMP). The NSMP is a

project to transform how our electricity and gas retail markets operate. Old, analogue meters will

be replaced by updated, digital meters. ESB Networks are leading on the replacement of electricity

meters with Gas Networks Ireland responsible for replacing gas meters.

Smart meters will bring many benefits to customers and the market by virtually eliminating the need

to use estimated readings and by providing more choice to customers in terms of products and

services. Smart meters will also facilitate better network planning.

The CRU is responsible for coordinating the project across all stakeholders including ESBN, GNI,

energy suppliers and consumer interest groups. For more information on the NSMP and what

changes will occur as a result of smart metering visit the CRU website.

ESB Networks has been tasked with the delivery of the roll out programme, which involves

upgrading all of Ireland’s electricity meters to smart meters. The replacement programme started

0

200

400

600

800

1000

1200

1400

https://www.cru.ie/document_group/smart-metering-project-phase-3/

35


in autumn 2019 and the plan is to replace 250,000 meters by the end of 2020. The plan is for a

further 500,000 meters to be upgraded every year from 2021 to 2024. The figure below shows the

number of electricity smart meters installed until the end of June 2020.

Figure 28: Number of Electricity Smart Meters Installed

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20

No

. o

f m

ete

rs

Existing Meters Installed New Monthly Installs

36

ENERGY PRICES

ENERGY PRICES

Summary of Section

• On average the wholesale price of gas was 52% lower in H1 2020 compared to H1 2019.

• On average the wholesale price of electricity was 43% lower in H1 2020 compared to H1 2019.

• Six suppliers announced price decreases in the first half of 2020, based on decreased wholesale costs incurred in previous periods.

• Estimated annual bills (EABs) across suppliers’ standard plans decreased from H2 2019 by an average of 1.2% in electricity and 3.4% in gas in H1 2020, while EABs across suppliers’ best discounted plans decreased by an average of 7.2% in electricity and 6.5% in gas.

• At the end of H1 2020, BE energy offered the cheapest available standard electricity plan with an EAB of €9704. Glow Power offered the cheapest available discount plan for electricity with an EAB of €751.

• At the end of H1 2020, Electric Ireland offered the cheapest available standard plan for gas with an EAB of €755. Bord Gáis Energy offered the cheapest available discount plan for gas with an EAB of €613.

• At the end of H1 2020, Bord Gáis Energy offered the cheapest available dual fuel plan with an EAB of €1,346.

• According to the latest SEAI report on electricity and gas prices, in semester 2 of 2019 (July - December 2019) the weighted average price of electricity to domestic customers in Ireland was above both the EU and the Euro Area weighted averages. The weighted average price of gas to domestic customers in Ireland was above the EU weighted average and below the Euro Area weighted average. Due to the time lag in the publications, the results of the report covering semester 1 of 2020 (January – June 2020) will be included in our next report.

8. Retail Energy Prices The retail electricity and gas markets in Ireland are fully price deregulated, therefore the CRU no

longer regulates the final electricity or gas prices in the domestic or business markets, but it does

monitor supplier prices. The retail energy markets are competitive markets which allow suppliers

to develop their individual strategies, including the setting of prices to customers.

8.1 Calculation of Estimated Annual Bills

In order for a domestic customer to accurately compare prices between suppliers, the comparison

of the Estimated Annual Bill (EAB), using current typical consumption values (4,200 kWh for

electricity and 11,000 kWh for gas) across suppliers is the best measure, unless a customer knows

their actual usage for the previous year and can estimate their usage for the coming year.

Price comparison websites are useful tools for customers to compare prices across suppliers. The

CRU has an accreditation framework which reviews the energy price comparison service provided

and only accredits a website if it meets defined standards for accuracy, transparency and reliability.

4 All figures for domestic energy retail bills are inclusive of VAT.


37

ENERGY PRICES

The three CRU accredited price comparison websites are: www.bonkers.ie, powertoswitch.ie and

www.switcher.ie.

The accredited comparison websites allow customers to enter their estimated consumption figures

if desired. It should be noted that the EAB only takes account of the price for an average energy

consumer. Those who consume higher or lower amounts than the average consumer may have a

different average annual bill in terms of which supplier provides the cheapest or most expensive

option.

Price is an important factor for a customer in determining which energy supplier will be best suited.

However, there are other factors not included in this analysis which could influence a customer’s

choice in energy supplier and plan.

The formulae used to calculate EABs are laid out below. The average consumption value for

electricity is 4,200 kWh and the average consumption value for gas is 11,000 kWh. EABs include

all taxes and levies, i.e. Public Service Obligation (PSO) levy (applied on electricity bills), Carbon

Tax (applied on gas bills), and Value Added Tax (VAT).

The PSO levy is a subsidy that all electricity suppliers are obliged by Government to apply to

electricity customers in Ireland and consists of subsidy schemes to support national policy

objectives related to renewable energy. The level of the PSO levy is set by the CRU in accordance

with Government policy and it is a separate charge identified on electricity bills. Please see here

for further information.

The carbon tax is a State tax applied to carbon-based fuels such as coal, peat, oil and natural gas.

The tax is intended to reduce carbon dioxide emissions and is part of Ireland’s strategy to support

a greener and cleaner environment. All gas suppliers must apply this tax to customers’ bills, and it

is a separate charge identified on gas bills.

VAT of 13.5% is paid on all domestic electricity and gas bills and is separately identified in

customers’ bills.

More information on the cost components of a typical domestic electricity and gas bill in Ireland

can be found in our recently published factsheet available here.

Electricity

Example:

unit rate of

electricity

4,200 kWh

standing charge per day

*365

PSO VAT EAB

0.1680 cent/ kWh

4,200 kWh

€0.43 *365

€41.76 €122.1 €1,026

http://www.bonkers.ie/

https://powertoswitch.ie/

http://www.switcher.ie/

https://www.cru.ie/wp-content/uploads/2019/07/CRU19094-PSO-Decision-Paper-2019-20.pdf

https://www.cru.ie/wp-content/uploads/2020/11/CRU20125-Factsheet-Domestic-Electricity-and-Gas-Bills-in-Ireland-CRU20125.pdf

38

ENERGY PRICES

Gas

Example:

8.2 Average Estimated Annual Bills Across Suppliers

This section outlines EABs across suppliers’ standard plans, best available discount plans and

best dual fuel plans.

All figures in this section are inclusive of VAT.

Domestic Electricity Prices

In June 2020 the following suppliers offered both standard and discount plans for domestic

electricity customers, along with PrePayPower, Pinergy and Electric Ireland who offered Pay As

You Go (PAYG) plans5.

Standard Domestic Electricity Estimated Annual Bills

December 2019 June 2020 Change % Change

BEenergy €970.18 €970.18 €0.00 0%

Bord Gáis Energy €1,091.11 €1,051.63 -€39.48 -4%

Community Power - €982.51 - -

Electric Ireland €1,034.90 €1,012.98 -€21.92 -2%

Energia €1,172.51 €1,143.95 -€28.56 -2%

Flogas - €1,164.13 - -

Glow Power €1,080.40 €1,080.40 €0.00 0%

Iberdrola €1,041.42 €1,041.42 €0.00 0%

Panda power €1,166.10 €1,166.10 €0.00 0%

SSE Airtricity €1,110.90 €1,087.18 -€23.72 -2%

PAYG Plans

Electric Ireland €1171.78 €1,149.85 -€21.93 -2%

Pinergy €1,221.40 €1,221.40 €0.00 0%

PrePayPower €1,196.87 €1,177.45 -€19.42 -2%

Table 9: Standard Domestic Electricity Estimated Annual Bills

BEenergy offered the cheapest standard domestic annual average bill at the end of H1 2020. The

most competitive discount annual average bill at the end of H1 2020 was offered by Glow Power.

5 The annual average bill for lifestyle choice PAYG customers includes an additional supplier service charge which is reflected in the price.

unit rate

of gas

11,000 kWh

standing charge per day

*365

carbon tax

VAT EAB

0.0539 cent/ kWh

11,000 kWh

€0.23 *365

€40.7 €96.9 €814

39

ENERGY PRICES

The average annual bill for domestic electricity decreased across most suppliers from December

2019 to June 2020 for standard and the most competitive discount plans.

From December 2019 to June 2020, the average annual bill for both the standard domestic

electricity and the most competitive discount electricity offerings ranged across suppliers with a

decrease of 11% to remaining unchanged. The decrease in the EABs between December 2019

and June 2020 reflects suppliers’ reduction in their unit rates which came into effect in Q2 2020,

and also better discount plans offered.

Most Competitive Discount Domestic Electricity Estimated Annual Bills


BEenergy €856.86 €758.65 -€98.21 -11%

Bord Gáis Energy €853.44 €781.99 -€71.45 -8%

Electric Ireland €837.40 €819.29 -€18.11 -2%

Energia €830.29 €764.69 -€65.60 -8%

Flogas - €809.46 - -

Glow Power €846.50 €751.78 -€94.72 -11%

Iberdrola €851.47 €772.04 -€79.43 -9%

Panda power €928.85 €899.82 -€29.03 -3%

SSE Airtricity €879.22 €826.76 -€52.46 -6%

Table 10: Most Competitive Discount Domestic Electricity Estimated Annual6

Domestic Gas Prices

In June 2020 the following suppliers offered standard and discounted plans for domestic gas

customers. Flogas, Electric Ireland, BGE and PrePayPower also offered PAYG plans7.

Standard Domestic Gas Estimated Annual Bills


Bord Gáis Energy €804.89 €773.72 -€31.17 -4%


Energia €937.03 €856.13 -€80.89 -9%

Flogas €941.75 €954.30 €12.55 1%

Iberdrola €796.21 €808.82 €12.61 2%

Panda Power €895.40 €908.00 €12.61 1%

SSE Airtricity €880.91 €811.30 -€69.61 -8%

PAYG Plans

Bord Gáis Energy €805.04 €773.72 -€31.32 -4%


Flogas €942.04 €954.30 €12.26 1%

PrePayPower €900.82 €836.78 -€64.04 -7%

Table 11: Standard Domestic Gas Estimated Annual Bills

6 It should be noted that some discounted plans offered by suppliers (including some of the best discounted plans presented here) are only available to new customers. 7 Note that some gas suppliers charge an installation fee for PAYG gas meters which is not included here.

40

ENERGY PRICES

For domestic gas, Electric Ireland offered the cheapest standard domestic annual average bill at

the end of H1 2020. The most competitive discounted annual average bill at the end of H1 2020

was offered by Bord Gáis Energy. From December 2019 to June 2020, the change in the average

annual bill for both the standard domestic gas and the most competitive discount gas offerings

ranged across suppliers with a decrease of 14% to an increase of 2%. The decrease in the EABs

between December 2019 and June 2020 reflects suppliers’ reduction in their unit rates which came

into effect in Q2 2020, and also better discount plans offered. The increase in the EABs is due to

the increase in the carbon tax from 1 May 2020. The effect of the increased carbon tax is not

directly visible in all the EABs presented as it is more than offset by the decreased unit rates in

some cases.

Most Competitive Discount Domestic Gas Estimated Annual Bills


Bord Gáis Energy €712.42 €613.12 -€99.30 -14%


Energia €820.74 €753.39 -€67.34 -8%

Flogas €670.83 €624.50 -€46.33 -7%

Iberdrola €692.86 €616.63 -€76.23 -11%

Panda Power €672.48 €684.81 €12.33 2%

SSE Airtricity €808.50 €747.49 -€61.01 -8%

Table 12: Most Competitive Discount Domestic Gas Estimated Annual Bills8

Domestic Dual Fuel Prices

In June 2020 the following suppliers offered dual fuel plans with price discounts for domestic

customers that avail of both services from the same supplier.

Bord Gáis Energy offered the cheapest dual fuel annual average bill at the end of H1 2020. From

December 2019 to June 2020 the average annual dual fuel bill ranged across suppliers with a

decrease of 10% to an increase of 1%.

Highest Discounted Dual Fuel Estimated Annual Bills


Bord Gáis Energy €1,499.89 €1,346.28 -€153.61 -10%

Electric Ireland €1,547.10 €1,473.17 -€73.93 -5%

Energia €1,494.85 €1,362.96 -€131.89 -9%

Flogas - €1,452.86 - -

Iberdrola €1,498.75 €1,370.28 -€128.47 -9%

Panda Power €1,587.89 €1,599.74 €11.85 1%

PrePayPower €2,097.69 €2,014.23 -€83.46 -4%

SSE Airtricity €1,616.56 €1,508.63 -€107.93 -7%

Table 13: Highest Discounted Dual Fuel Estimated Annual Bills

8 It should be noted that some discounted plans offered by suppliers (including some of the best discounted plans presented here) are only available to new customers.

41

ENERGY PRICES

8.3 Estimated Annual Bills Over Time

During the first half of 2020 a number of suppliers - Electric Ireland, PrePay Power, Bord Gáis

Energy, SSE Airtricity, Pinergy and Energia - announced price decreases in their electricity and

gas prices resulting from decreasing wholesale costs in previous months.

The figures below show EABs across suppliers’ standard plans, best available discount plans and

best dual fuel plans in electricity and gas since December 2016.

Figure 29: Standard Domestic Electricity Estimated Annual Bills per Supplier

In June 2020, the cheapest standard electricity plan was offered by BEenergy and the most

expensive by Panda Power, while in gas the cheapest standard plan was offered by Electric Ireland

and the most expensive by Flogas.

Figure 30: Standard Domestic Gas Estimated Annual Bills per Supplier

€ 900

€ 950

€ 1,000

€ 1,050

€ 1,100

€ 1,150

€ 1,200

Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20

Panda Power

Flogas

Energia

SSE Airtricity

Glow Power

Bord Gáis Energy

Iberdrola

Electric Ireland

Community Power

BEenergy

€650

€700

€750

€800

€850

€900

€950

€1,000


Flogas

Panda Power

Energia

SSE Airtricity

Iberdrola

Bord Gáis Energy

Electric Ireland

42

ENERGY PRICES

Figure 31: Most Competitive Discount Domestic Electricity Estimated Annual Bills per

Supplier

The most competitive discount electricity plan was offered by Glow Power and the most expensive

by Panda Power, while the most competitive discount gas plan was offered by Bord Gáis Energy

and the most expensive was offered by Energia.

Figure 32: Most Competitive Discount Domestic Gas Estimated Annual Bills per Supplier

In dual fuel, Bord Gáis Energy offered the most competitive dual fuel plan at the end of H1 2020,

closely followed by Energia and Iberdrola. The most expensive dual fuel plan was offered by Panda

Power.

€700

€750

€800

€850

€900

€950

€1,000


Panda Power

SSE Airtricity

Electric Ireland

Flogas

Bord Gáis Energy

Iberdrola

Energia

BEenergy

GlowPower

€500

€550

€600

€650

€700

€750

€800

€850

€900


Energia

SSE Airtricity

Panda Power

Electric Ireland

Flogas

Iberdrola

Bord Gáis Energy

43

ENERGY PRICES

Figure 33: Most Competitive Domestic Dual Fuel Estimated Annual Bills per Supplier

8.4 Electricity and Gas Prices in a European Context

The following section outlines analysis carried out by the Sustainable Energy Authority of Ireland

(SEAI) on electricity and gas prices in Ireland, the Euro Area and the EU-28. SEAI publishes its

analysis on a bi-annual basis. The latest analysis uses data published by Eurostat up to semester

2 of 2019 and can be found here. SEAI analysis for semester 1 of 2020 has not been published

yet. Due to the time lag in the publications, the results of the report covering semester 1 of 2020

will be included in our next report.

The figures below show estimated weighted average prices across all consumption bands in the

Euro Area and the EU-28 and weighted average prices across all consumption bands in Ireland.


The weighted average price of electricity to domestic customers in Ireland was mainly above the

EU weighted average and fluctuated around the Euro Area weighted average over the period. In

the second half of 2019 it was above both the EU weighted average and the Euro Area weighted

average.

Figure 34: Average Electricity Prices (all taxes included) to Households – All Consumption

Bands

€1,200

€1,300

€1,400

€1,500

€1,600

€1,700

€1,800

€1,900


Panda Power

SSE Airtricity

Electric Ireland

Flogas

Iberdrola

Energia

Bord Gáis Energy


44

ENERGY PRICES

Domestic Gas

The weighted average price of gas to domestic customers in Ireland was below the Euro Area

weighted average over the whole period, and below the EU weighted average between the first

half of 2010 and the first half of 2013 and was above after that. In second half of 2019 it was above

the EU weighted average and below the Euro Area weighted average.

Figure 35: Average Gas Prices (all taxes included) to Households – All Consumption Bands


The weighted average price of electricity to business consumers in Ireland has been above both

the EU and Euro Area average since the second half of 2011. In the second half of 2019 it remained

above both the EU weighted average and Euro Area weighted average.

Figure 36: Average Electricity Prices (ex-VAT) to Business – All Consumption Bands

45

ENERGY PRICES

Non-Domestic Gas

The weighted average price of gas to business consumers in Ireland has been above the EU

weighted average and fluctuated around the Euro Area weighted average. In the second half of

2019 it was above the EU weighted average and below the Euro Area weighted average.

Figure 37: Average Gas Prices (ex-Vat) to Business – All Consumption Bands

46

ENERGY PRICES

9. Wholesale Energy Prices One of the primary components of final retail energy prices is the cost of wholesale energy. As the

Irish electricity fuel mix is highly dependent on gas, the wholesale gas price is a major factor in

determining final retail electricity prices. The cost of wholesale gas also makes up a considerable

percentage of the final retail gas price.

9.1 Wholesale Gas Prices

The wholesale price of gas in Ireland is set by reference to the wholesale price at the trading hub

in Britain, the National Balancing Point (NBP) plus the cost of transport to Ireland via the

interconnectors.

As gas is sold for delivery at different times, suppliers develop hedging strategies which aim to

smooth the impact of buying gas at different prices and allow price stability for customers. This can

include Month Ahead, Day Ahead and Within Day wholesale gas products. Wholesale gas prices

are set in Sterling and gas at the NBP is sold in pence/therm. Therefore, Euro/Sterling currency

fluctuations influence wholesale gas prices in Euro in Ireland.

The figure below shows the change in average monthly day ahead gas prices over time at the

NBP. It also shows the average price across each year between 2012 and 2020.

Figure 38: NBP Day Ahead Gas, €/therm, January 2012 – June 2020

On average, the day ahead price declined from 2014 to 2016 but increased in 2017 and further in

2018, before falling again in 2019 and in the first half of 2020. In the first half of 2020 the average

day ahead price for gas was 0.22 €/therm, compared to 0.40 €/therm in 2019 and 0.68 €/therm in

2018. The average price of gas for the first half of 2020 was 52% lower than the average price for

the same period in 2019.

€ -

€ 0.10

€ 0.20

€ 0.30

€ 0.40

€ 0.50

€ 0.60

€ 0.70

€ 0.80

€ 0.90

€ 1.00

€ 1.10

Jan-1

2

Ma

y-1

2

Sep-1

2

Jan-1

3

Ma

y-1

3

Sep-1

3

Jan-1

4

Ma

y-1

4

Sep-1

4

Jan-1

5

Ma

y-1

5

Sep-1

5

Jan-1

6

Ma

y-1

6

Sep-1

6

Jan-1

7

Ma

y-1

7

Sep-1

7

Jan-1

8

Ma

y-1

8

Sep-1

8

Jan-1

9

Ma

y-1

9

Sep-1

9

Jan-2

0

Ma

y-2

0

Gas E

uro

/therm

NBP DA 2012 2013 2014 2015

2016 2017 2018 2019 2020

47

ENERGY PRICES

9.2 Wholesale Electricity Prices

The wholesale electricity market on the island of Ireland is jointly regulated by the CRU and the

Utility Regulator (UR) and is known as the Single Electricity Market (SEM). New market

arrangements for SEM went live on 1st October 2018 and introduced multiple markets or auctions,

each spanning different trading time frames, with separate (although related) clearing and

settlement mechanisms, covering both energy and non-energy commodities. Suppliers buy

electricity in the SEM at different timeframes. Electricity can be traded from over a year to one

month ahead of the trading day, and from one day ahead of the trading day up to shortly before

real-time.

The figure below shows the average monthly price of electricity and average price of electricity

across each year in the SEM between 2012 and 2020. With the new wholesale market

arrangements going live on 1st of October 2018, the all-island System Marginal Price (SMP) is

considered to be equivalent to the day ahead market price.

Figure 39: Wholesale Electricity Price, €/MWh, January 2012 – June 2020

On average, the average wholesale electricity price declined from 2013 to 2016 but increased in

2017 and further in 2018, before falling again in 2019 and in the first half of 2020. The average

price in the first half of 2020 was 31 €/MWh, compared to 50 €/MWh in 2019 and 63 €/MWh in

2018. The average price of electricity for the first half of 2020 was 43% lower than the average

price for the same period in 2019.

9.3 Correlation of Wholesale Gas and Electricity Prices

As a large proportion of electricity is generated from natural gas there is a noticeable correlation

between wholesale natural gas prices and wholesale electricity prices. The graph below shows

that there is a common trend of prices between the NBP day ahead gas price and the all-island

SMP/day ahead price.

€ -

€ 10.00

€ 20.00

€ 30.00

€ 40.00

€ 50.00

€ 60.00

€ 70.00

€ 80.00

€ 90.00

€ 100.00

Jan-1

2

Ma

y-1

2

Sep-1

2

Jan-1

3

Ma

y-1

3

Sep-1

3

Jan-1

4

Ma

y-1

4

Sep-1

4

Jan-1

5

Ma

y-1

5

Sep-1

5

Jan-1

6

Ma

y-1

6

Sep-1

6

Jan-1

7

Ma

y-1

7

Sep-1

7

Jan-1

8

Ma

y-1

8

Sep-1

8

Jan-1

9

Ma

y-1

9

Sep-1

9

Jan-2

0

Ma

y-2

0

SE

M E

uro

/MW

h

SEM DA 2012 2013 2014 2015

2016 2017 2018 2019 2020

48

ENERGY PRICES

The new market arrangements for the wholesale electricity market went live in October 2018 with

price volatility observed associated with the period of transition to the new market. In the first

quarter of 2019, prices in the electricity Day Ahead Market (DAM) were 4% higher than the same

period in 2018, driven by an increase in demand of 9% over the year, increased carbon costs and

a number of unplanned generation outages in January which impacted on market prices. During

periods of high wind, the Day-Ahead price dropped significantly and the highest prices between

the end of 2018 and the first part of 2019 were generally associated with a low wind forecast. Due

to these factors there was greater divergence between the DAM price and gas prices for the same

period than observed previously.

Between January to June 2020, DAM prices decreased by 44% compared to the same period in

2019 and gas DA prices decreased by 52%.

Figure 40: Correlation between monthly SEM wholesale electricity price and NBP

wholesale gas price, January 2012 – June 2020

€ -

€ 0.20

€ 0.40

€ 0.60

€ 0.80

€ 1.00

€ 1.20

€-

€10

€20

€30

€40

€50

€60

€70

€80

€90

€100

Jan-1

2

Ma

y-1

2

Sep-1

2

Jan-1

3

Ma

y-1

3

Sep-1

3

Jan-1

4

Ma

y-1

4

Sep-1

4

Jan-1

5

Ma

y-1

5

Sep-1

5

Jan-1

6

Ma

y-1

6

Sep-1

6

Jan-1

7

Ma

y-1

7

Sep-1

7

Jan-1

8

Ma

y-1

8

Sep-1

8

Jan-1

9

Ma

y-1

9

Sep-1

9

Jan-2

0

Ma

y-2

0

€/Therm€/MWh

SEM DA

NBP DA

49

SECTORAL DEVELOPMENTS


10. Energy Market Developments

Summary of Section

• This section provides information on market developments that took place in the first half of 2020.

• During the first half of 2020 one new supplier entered the electricity market.

• There were 12 active suppliers in the domestic electricity market and 8 active suppliers in the domestic gas market, while 8 suppliers offered dual fuel.

The following table outlines some key developments in terms of market entry and exit in the

electricity and gas retail markets in the first half of 2020.

Key Retail Market Developments H1 2020

Electricity Gas

• January: Community Power enters the

domestic and non-domestic electricity

markets -

Active Suppliers and New Entrants

Since price deregulation a number of new suppliers have entered the market. Those with a market

share above 1% are reported on by the CRU through market monitoring. In the first half of 2020

there was one new entrant (Community Power) in the energy market.

Figure 41: Market Developments 2011-2020

• Electric Ireland (Electr. & Gas)

• SSE Airitricity (Electr. & Gas)

• Bord Gáis Energy (Electr. & Gas)

• Flogas (Gas)

2011

• PrePayPower (Electr.)

2012• Pinergy

(Electr.)

2013

• Energia (Electr. & Gas)

2014

• Panda (Electr.)

2015

• Flogas (Electr.)

• PrePayPower (Gas)

2016 • Be Energy (Electr.)

• Just Energy (Electr. & Gas)

2017

• Panda (Dom. Gas)

2018

• Iberdrola (Dom. Electr. & Gas)

• Glow Power (Dom. Electr.)

• Just Energy leaves (Electr. & Gas)

2019

• Community Power (Electr.)

2020

50


Active Domestic Suppliers

12 Supply Electricity

8 Supply Gas

8 Dual Fuel

The main suppliers in the electricity and gas retail markets in June 2020 are identified in the

table below, along with an indication of which markets they are active in.



Domestic Gas

Non-Domestic

Gas

BEenergy X X

Bord Gáis Energy

Community Power

X X

Electric Ireland

Energia

Flogas

Glow Power X X X

Go Power X X X

Naturgy X X

Iberdrola

Panda Power

Pinergy X X

PrePay Power

SSE Airtricity

Table 14: Active markets by supplier in June 2020

51


11. Electricity Market

Summary of Section

• This section contains market share data for the main electricity suppliers in Ireland. Data is presented in terms of actual customer numbers and consumption (in MWhs) for the first half of 2020.

• In H1 2020, Electric Ireland held the greatest domestic electricity market share with 47.7% of total consumption. This was followed by Bord Gáis Energy with 17.6% market share by consumption, followed by SSE Airtricity with 12.8%, Energia with 9.0%, PrePayPower with 6.9%, Panda Power with 2.6% and Pinergy with 1.3%.

• In the non-domestic markets Electric Ireland remained the largest electricity supplier in terms of consumption in the small business, and medium business market segments in H1 2020. Electric Ireland held the second largest share in the LEU market, with SSE Airtricity being the largest supplier in this segment.

The electricity market is comprised of four different market segments; Domestic, Small-sized

business, Medium-sized business and Large Energy Users (LEU).

The total number of customers in the electricity market at the end of H1 2020 was 2,400,188 and

total consumption for the first half of the year was 11,177,175 MWh. This represents an increase

in customer numbers of 0.4% between H2 2019 and H1 2020, and a decrease in consumption in

H1 2020 of 18.7% compared to the same period last year.

In the electricity market there is a range of both very large and very small suppliers. Those that

represent at least a 1% share of consumption are reported separately in each specific market. It is

worth noting that in electricity, the ‘others’ category in some segments includes data on ‘suppliers’

that are not necessarily active in the electricity retail market, i.e. they are self-suppliers, or they

only have very few sites. The activity of these companies generally does not have a significant

impact on overall trends. Nonetheless, some ‘suppliers’ not active in the retail market with only

one/two sites may generate a relatively high proportion of MWhs within the ‘Others’ category.

The table below shows the number of customers in each market segment.

Electricity Customer Numbers

Q1 2020 Q2 2020 H1 2020 H2 2019

% change between H2 2019 - H1 2020

Domestic 2,105,111 2,108,600 2,108,600 2,099,559 0.4%

Small Business

185,255 185,019 185,019 185,203 -0.1%

Medium Business

104,150 104,537 104,537 103,621 0.9%

LEUs 2,025 2,032 2,032 2,013 0.9%

Total Electricity

2,396,541 2,400,188 2,400,188 2,390,396 0.4%

Table 15: Electricity Customer Numbers H2 2019 – H1 2020

52


The table below shows the level of consumption in each market segment. It is considered likely

that the increase in domestic consumption and the decrease in consumption in the small and

medium business segments is at least in part related to the onset of the Covid-19 health emergency

in Ireland in March 2020, with people working and spending more time at home and businesses

decreasing or suspending their activities for a period of time during H1 2020.

Electricity Consumption (MWh)

Q1 2020 Q2 2020 H1 2020 H1 2019

% change between H1 2019 – H1 2020

Domestic 2,526,980 2,166,876 4,703,200 4,406,741 6.7%

Small Business

1,009,936 700,867 1,710,861 1,862,075 -8.1%

Medium Business

1,035,764 753,235 1,789,004 2,010,071 -11.0%

LEUs 1,560,831 1,422,685 5,684,421 5,471,381 3.9%

Total Electricity

6,133,512 5,043,663 13,887,486 13,750,268 1.0%

Table 16: Electricity Consumption (MWh) H1 2019 – H1 2020

11.1 Domestic Electricity Market Share

Figure 42: Domestic Electricity Market Share (%)

At the end of H1 2020, Electric Ireland had the largest share in the domestic electricity market

segment, with 47.7% of the market in terms of consumption. This was followed by Bord Gáis

Domestic Electricity Market Share (%)

(a) Customer Nos (b) MWhs

52.1%

11.4%

16.2%

7.4%

7.4%

1.3%

1.9%2.4%

47.7%

17.6%

12.8%

9.0%

6.9%

2.6%

2.1%

1.3%

Electric Ireland

Bord Gáis Energy

SSE Airtricity

Energia

PrePayPower

Panda

Others

Pinergy

53


Energy with 17.6%, SSE Airtricity with 12.8%, Energia with 9.0%, PrePayPower with 6.9%, Panda

Power with 2.6% and Pinergy with 1.3%.

The table below shows the number of customers and the level of consumption per supplier.

Sites Q1 2020

Sites Q2 2020

MWhs Q1 2020

MWhs Q2 2020

MWhs H1 2020

Electric Ireland 1,104,511 1,097,888 1,218,972 1,022,249 2,241,222

SSE Airtricity 241,955 239,400 323,954 277,940 601,895

Bord Gáis Energy 341,629 341,938 440,633 388,597 829,231

PrePayPower 155,076 156,992 171,533 154,235 325,768

Energia 157,244 156,064 232,757 192,250 425,006

Pinergy 26,890 26,807 34,717 26,879 61,596

Panda 48,871 49,638 64,124 57,137 121,261

Others 28,935 39,873 43,784 53,437 97,221

Total 2,105,111 2,108,600 2,530,475 2,172,725 4,703,200

Table 17: Number of sites and MWhs per supplier

The graph below shows the trend in market share from H1 2015 to H1 2020 in terms of

consumption. Electric Ireland’s market share decreased between H1 2015 and H1 2020. It fell just

below 50% for the first time in H2 2017 and remained below the 50% since then. Significant gains

have been made over time by Bord Gáis Energy and SSE Airtricity and more recently by

PrePayPower and Energia.

Figure 43: Domestic Electricity Market Share Trend (%)

0%

10%

20%

30%

40%

50%

60%

H12015

H22015

H12016

H22016

H12017

H22017

H12018

H22018

H12019

H22019

H12020

Electric Ireland SSE Airtricity Bord Gáis Energy PrePayPower

Energia Pinergy Others Panda

54


11.2 Small-Sized Business Electricity Market Share

Figure 44: Small-Sized Business Electricity Market Share (%)

At the end of H1 2020, Electric Ireland had the largest share in the small business market segment,

with 31.0% of the market in terms of consumption. This was followed by Energia with 25.5%, SSE

Airtricity with 17.9% Bord Gáis Energy with 13.8%, Panda Power 4.3%, Flogas with 3.3%, Go

Power with 2.0% and Pinergy with 1.1%.


Sites Q1 2020

Sites Q2 2020

MWhs Q1 2020

MWhs Q2 2020

MWhs H1 2020

Electric Ireland 66,069 66,088 311,449 219,519 530,968

SSE Airtricity 31,926 30,838 181,234 124,737 305,971

Bord Gáis Energy 28,163 27,752 144,206 92,488 236,693

Energia 37,106 36,780 258,007 177,904 435,911

Pinergy 2,363 2,444 10,624 8,162 18,785

Panda Power 9,552 9,702 44,260 30,142 74,402

Flogas 4,874 6,150 30,216 26,009 56,225

Go Power 3,559 3,563 20,073 13,796 33,868

Others 1,643 1,702 9,901 8,136 18,037

Total 185,255 185,019 1,009,969 700,892 1,710,861


Small Business Market Share (%)


35.7%

16.7%15.0%

19.9%

1.3%

5.2%3.3%

1.9% 0.9%

31.0%

17.9%

13.8%

25.5%

1.1%4.3%

3.3%

2.0% 1.1%

Electric Ireland

SSE Airtricity

Bord Gáis Energy

Energia

Pinergy

Panda Power

Flogas

Go Power

Others

55



consumption. Market shares in this segment have remained fairly steady for the different suppliers

over time.

Figure 45: Small-Sized Business Electricity Market Share Trend (%)

11.3 Medium-Sized Business Electricity Market Share

Figure 46: Medium Business Electricity Market Share (%)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

H12015

H22015

H12016

H22016

H12017

H22017

H12018

H22018

H12019

H22019

H12020

Electric Ireland SSE Airtricity Bord Gáis Energy

Energia Pinergy Panda Power

Flogas Go Power Others

Medium-Sized Business Electricity Market Share (%)


21.8%

9.0%

1.1%

63.3%

3.5%0.3% 0.2%

0.5%

36.3%

17.6%7.8%

30.9%

2.8%1.6%

1.1%1.9%

Electric Ireland

SSE Airtricity

Bord Gáis Energy

Energia

Naturgy

Go Power

Pinergy

Others

56


At the end of H1 2020, Electric Ireland had the largest share in the medium business market

segment, with 36.3% of the market in terms of consumption. This was followed by Energia with

30.9%, SSE Airtricity with 17.6%, Bord Gáis Energy with 7.8%, Naturgy with 2.8%, Go Power with

1.6%, and Pinergy with 1.1%.


Sites Q1 2020

Sites Q2 2020

MWhs Q1 2020

MWhs Q2 2020

MWhs H1 2020

Electric Ireland 22,606 22,836 377,624 272,255 649,880

SSE Airtricity 9,540 9,412 179,324 134,872 314,196

Bord Gáis Energy

1,265 1,194 89,734 50,613 140,347

Energia 65,972 66,205 315,730 237,019 552,749

Naturgy 3,700 3,706 27,064 22,505 49,569

Go Power 354 364 16,076 12,759 28,835

Pinergy 195 247 11,277 8,012 19,289

Others 518 573 18,937 15,203 34,140

Total 104,150 104,537 1,035,767 753,238 1,789,004



consumption. Electric Ireland’s market share remained fairly steady since. SSE Airtricity’s market

share decreased between 2015 and 2017 before increasing again between H1 2018 and H1 2019.

Energia also gained a significant share in this segment with its market share fluctuating between

29-35% over the last five years.

Figure 47: Medium-Sized Business Electricity Market Share Trend (%)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

H12015

H22015

H12016

H22016

H12017

H22017

H12018

H22018

H12019

H22019

H12020

Electric Ireland SSE Airtricity Bord Gáis Energy Energia

Naturgy Go Power Pinergy Others

57


11.4 Large Energy Users (LEUs) Electricity Market Share

Figure 48: LEU Electricity Market Share (%)

At the end of H1 2020, SSE Airtricity had the largest share in the Large Energy Users (LEU) market

segment, with 37.3% of the market in terms of consumption. This was followed by Electric Ireland

with 31.0%, Energia with 12.0%, Bord Gáis Energy with 6.7%, BRI Green Energy Limited with

6.0% and Naturgy with 3.0%.


Sites Q1 2020

Sites Q2 2020

MWhs Q1 2020

MWhs Q2 2020

MWhs H1 2020

Electric Ireland 745 771 909,058 845,818 1,754,877

SSE Airtricity 317 291 1,083,496 1,028,153 2,111,650

Bord Gáis Energy 303 240 211,573 169,104 380,677

Energia 369 439 331,210 348,536 679,746

Naturgy 123 124 92,077 76,872 168,949

BRI Green Energy Limited

23 23 169,169 172,628 341,797

Others 145 144 125,388 121,337 246,725

Total 2,025 2,032 2,921,972 2,762,449 5,684,421



consumption. Between 2016 to H1 2020, there has been an overall decline in the market for

Electric Ireland and incline for SSE Airtricity. SSE Airtricity has experienced the largest gains in

LEU Market Share (%)


37.9%

14.3%11.8%

21.6%

6.1%

1.1%

7.1%

30.9%

37.1%

6.7%

12.0%

3.0%6.0%

4.3%Electric Ireland

SSE Airtricity

Bord Gáis Energy

Energia

Naturgy

BRI Green EnergyLimited

Others

58


terms of customers and consumption since 2009, and the highest share in the market since H1

2018.

Figure 49: LEUs Market Share Trend (%)

11.5 Electricity Market Concentration

The HHI (Herfindahl-Hirschman Index) is a widely used metric to measure market concentration9.

The lower the value of the HHI index, the lower the concentration of the market is. With low market

concentration, the ability of any market player to exploit market power to the detriment of

consumers is reduced and consumers can benefit from competition, innovation and customer

services.

The figure below shows the level of the HHI between H1 2016 – H2 2020. There has been a steady

decrease in the HHI in the domestic and small business segments over time. The HHI for the

medium business has been fairly steady between 2016 – 2018 and decreased in 2019. In the large

business segment, there has been a decrease in the HHI until 2018 and an increase in 2019, while

it has remained fairly steady since H1 2019. The increase in 2019 is observed due to the increase

in the market share of one of the suppliers operating in this segment.

In H1 2020 the HHI was 2,888 for the domestic market segment (compared to 2,941 in H2 2019),

2,144 for the small business market segment (2,188 in H2 2019), 2,720 for the medium business

market segment (2,680 in H2 2019), and 2,642 for the large business market segment (2,686 in

H2 2019). According to the European Commission an HHI above 2,000 indicates a highly

concentrated market. Even though the HHI has decreased in most market segments over time, it

remains above the threshold of 2,000. The CRU will further promote competition for the benefit of

energy customers.

9 The HHI is calculated as the sum of the squares of the market shares of all firms in the market, or the 50 largest firms if applicable. It ranges between 0, for an infinite number of small firms, and 10,000, for one firm with a 100% market share. The European Commission considers an HHI above 2,000 to signify a highly concentrated market.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

H12015

H22015

H12016

H22016

H12017

H22017

H12018

H22018

H12019

H22019

H12020

Electric Ireland SSE Airtricity Bord Gáis Energy

Energia Naturgy BRI Green Energy Limited

Others

59


Figure 50: HHI Trends Over Time (H1 2016 – H2 2020)

2000

2200

2400

2600

2800

3000

3200

3400

3600

H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020

Domestic Small Business Medium Business Large Business

60


12. Gas Market

Summary of Section

• This section contains market share data for the main gas suppliers in Ireland. Data is presented in terms of actual customer numbers and consumption (in GWh) for the first half of 2020.

• In H1 2020 Bord Gáis Energy held the greatest market share in the domestic gas market with 43.6% of the market by customer numbers. This was followed by Electric Ireland with 21.4%, SSE Airtricity with 11.7%, Energia with 8.8%, PrePay Power with 7.6%, Flogas with 4.0% and Panda Power with 1.8%.

• In the non-domestic markets Bord Gáis Energy remained the largest supplier in terms of customer numbers in the IC, medium-sized non-domestic gas and LDM gas market segments, while it is the third biggest supplier in the DM market segment with Energia having the largest share in this market segment followed by Electric Ireland.

The gas market is comprised of five different market segments; Domestic, Industrial/Commercial

(IC), Medium-sized non-domestic gas, Daily Metered (DM) and Large Daily Metered (LDM).

The total number of customers in the gas market at the end of H1 2020 was 708,758 and total

consumption for the year was 11,499 GWh. This represents an increase in customer numbers of

0.4% between H2 2019 and H1 2020, and a decrease in consumption in H1 2020 of 3.4%

compared to the same period last year.

The gas market comprises a range of both very large and very small suppliers. Those that

represent at least a 1% share of customer numbers are reported separately in each specific

market.

The table below shows the number of customers in each market segment.

Gas Customer Numbers

Q1 2020 Q2 2020 H1 2020 H2 2019


Domestic 680,525 681,519 681,519 678,766 0.4%

IC 24,967 25,025 25,025 24,901 0.5%

Medium-sized non-domestic

1,922 1,925 1,925 1,914 0.6%

DM 256 256 256 255 0.4%

LDM 33 33 33 33 0.0%

Total Gas 707,703 708,758 708,758 705,869 0.4%

Table 21: Gas Customer Numbers H2 2019 – H1 2020

The table below shows the level of consumption in each market segment. It is considered likely

that the decrease in consumption in the business segments is at least in part related to the onset

of the Covid-19 health emergency in Ireland in March 2020, with businesses decreasing or

61


suspending their activities for a period of time. Better weather conditions are likely to have also

contributed in the decreased consumption in all market segments.

Gas Consumption (GWh)

Q1 2020 Q2 2020 H1 2020 H1 2019


Domestic 3,281 964 4,245 4,389 -3.3%

IC 800 323 1,124 1,178 -4.6%

Medium-sized non-domestic

922 387 1,308 1,443 -9.4%

DM 1,011 722 1,732 1,758 -1.5%

LDM 1,422 1,668 3,090 3,133 -1.4%

Total Gas 7,436 4,064 11,499 11,901 -3.4%

Table 22: Gas Consumption (GWh) H1 2019 – H1 2020

12.1 Domestic Gas Market Share

Figure 51: Domestic Gas Market Share (%), H1 2020

At the end of H1 2020, Bord Gáis Energy had the largest share in the domestic gas market

segment, with 43.6% of the market in terms of customer numbers. This was followed by Electric

Ireland with 21.4%, SSE Airtricity with 11.7%, Energia with 8.8%, PrePay Power with 7.6%, Flogas

with 4% and Panda Power with 1.76%.

Domestic Gas Market Share (%)

(a) Customer Numbers (b) MWhs

11.7%

43.6%21.4%

4.0%8.8%

1.1%7.6%

1.8%

12.8%

44.1%20.2%

4.5%9.9%

0.8% 5.7%1.9%

SSE Airtricity

Bord Gáis Energy

Electric Ireland

Flogas

Energia

Others

Prepay Power

Panda

62



Sites Q1 2020

Sites Q2 2020

GWhs Q1 2020

GWhs Q2 2020

GWhs H1 2020

SSE Airtricity 82,130 79,714 423 122 545

Bord Gáis Energy 295,521 297,245 1444 429 1872

Electric Ireland 145,900 145,795 663 193 857

Flogas 27,919 27,239 148 42 189

Energia 60,654 60,001 329 93 422

PrePay Power 50,629 51,872 187 57 244

Panda Power 11,714 12,005 61 19 80

Others 6,058 7,648 25 11 36

Total 680,525 681,519 3,281 964 4,245


The figure below shows the trend in market share between H1 2016 and H1 2020 in terms of

customer numbers. There has been a decrease in Bord Gáis Energy’s market share over time.

This is a result of more suppliers entering the market, which has led to greater diversity and choice

for Ireland’s domestic gas consumers.

Figure 52: Domestic Gas Market Share (%)

0%

10%

20%

30%

40%

50%

60%

H12015

H22015

H12016

H22016

H12017

H22017

H12018

H22018

H12019

H22019

H12020

Bord Gáis Energy Electric Ireland SSE Airtricity Energia

Prepay Power Flogas Panda Others

63


12.2 Industrial and Commercial (IC) Gas Market Share

Figure 53: IC Gas Market Share (%)

At the end of H1 2020, Bord Gáis Energy had the largest share in the IC gas market segment, with

43.7%% of the market in terms of customer numbers. This was followed by Flogas with 19.6%,

Energia with 14.1%, Electric Ireland with 11.2%, SSE Airtricity with 9.9% and Naturgy with 1.5%.


Sites Q1 2020

Sites Q2 2020

GWhs Q1 2020

GWhs Q2 2020

GWhs H1 2020

Bord Gáis Energy 11,069 10,946 324 126 45

SSE Airtricity 2,443 2,467 96 30 127

Electric Ireland 2,820 2,795 94 39 133

Flogas 4,691 4,907 131 65 196

Energia 3,562 3,527 127 52 179

Naturgy 376 376 29 11 40

Others 6 7 0.3 0.02 0.3

Total 24,967 25,025 800 323 1,124

Table 24: Number of sites and GWhs per supplier


customer numbers, with Bord Gáis Energy’s share remaining fairly steady. The case was similar

for Flogas and Naturgy, while Energia experienced a decrease in its market share and Electric

Ireland and SSE Airtricity experienced an increase.

IC Market Share (%)


9.9%

43.7%

11.2%

19.6%

14.1%

1.5%0.0%

11.3%

40.0%

11.8%

17.4%

15.9%

3.6%0.0%

SSE Airtricity

Bord Gáis Energy

Electric Ireland

Flogas

Energia

Naturgy

Others

64


Figure 54: IC Market Share Trend (%)

12.3 Medium-Sized Non-Domestic Gas Market Share

Figure 55: Medium-Sized Non-Domestic Gas Market Share (%)

At the end of H1 2020, Bord Gáis Energy had the largest share in the medium-sized non-domestic

gas market segment, with 30.5% of the market in terms of customer numbers. This was followed

by Electric Ireland with 15.8%, SSE Airtricity with 15.2%, Energia with 13.0%, Flogas with 12.8%

and Naturgy with 12.7%.

0%

10%

20%

30%

40%

50%

60%

H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020

Bord Gáis Energy Flogas Energia

Electric Ireland SSE Airtricity Naturgy

Others

Medium-Sized Non-Domestic Market Share (%)


15.2%

30.5%

15.8%

12.8%

13.0%

12.7% 14.6%

30.8%

16.9%

12.3%

13.2%

12.1% SSE Airtricity

Bord Gáis Energy

Electric Ireland

Flogas

Energia

Naturgy

65



Sites Q1 2020

Sites Q2 2020

GWhs Q1 2020

GWhs Q2 2020

GWhs H1 2020

Bord Gáis Energy 592 588 289 114 403

SSE Airtricity 295 292 139 52 191

Electric Ireland 301 304 152 70 221

Flogas 241 247 113 48 161

Energia 248 250 117 57 173

Naturgy 245 244 112 46 158

Total 1922 1925 922 387 1,308



customer numbers. Bord Gáis Energy’s market share has declined significantly since H1 2017,

while Electric Ireland and SSE Airtricity have gained significant share in the medium-sized non-

domestic gas segment during the same period. Similar to Bord Gáis Energy, Energia and Flogas

also had large losses in their market shares between H1 2016 and H1 2020.

Figure 56: Medium-Sized Non-Domestic Business Electricity Market Share Trend (%)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020

Bord Gáis Energy Electric Ireland SSE Airtricity

Energia Flogas Naturgy

Others

66


12.4 Daily Metered (DM) Market Share

Figure 57: DM Gas Market Share (%)

At the end of H1 2020, Energia had the largest share in the DM market segment, with 25.4% of

the market in terms of customer numbers. This was followed by Electric Ireland with 22.3%, Bord

Gáis Energy with 20.3%, Naturgy with 16.8%, SSE Airtricity with 14.1% and Flogas with 1.2%.


Sites Q1 2020

Sites Q2 2020

GWhs Q1 2020

GWhs Q2 2020

GWhs H1 2020

Bord Gáis Energy 52 52 175 119 294

SSE Airtricity 37 36 156 95 251


Energia 62 65 307 238 545

Naturgy 43 43 157 106 263

Flogas 4 3 7 3 10

Total 256 256 1,011 722 1,732



customer numbers. Bord Gáis Energy’s market share has fallen significantly since H1 2017. At the

end of H1 2020, Bord Gáis Energy had the third largest share in this segment, below Energia and

Electric Ireland that gained significant share in the market over the years with the largest increased

experienced by Electric Ireland. Naturgy and SSE Airtricity also have relatively large shares in this

market segment.

DM Market Share (%)


14.1%

20.3%

22.3%

25.4%

16.8%

1.2%

14.5%

17.0%

21.3%

31.4%

15.2%

0.6%

SSE Airtricity

Bord Gáis Energy

Electric Ireland

Energia

Naturgy

Flogas

67


Figure 58: DM Market Share Trend (%)

12.5 Large Daily Metered (LDM) Market Share

Figure 59: LDM Gas Market Share (%)

At the end of H1 2020, Bord Gáis Energy had the largest share in the LDM market segment, with

33.3% of the market in terms of customer numbers. This was followed by Electric Ireland with

24.2%, SSE Airtricity with 18.8%, Naturgy with 15.2% and Energia with 9.1%.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020

Energia Electric Ireland Bord Gáis Energy

Naturgy SSE Airtricity Flogas

LDM Market Share (%)


18.2%

33.3%24.2%

9.1%

15.2%21.9%

43.7%

18.7%

3.7%

12.0%

SSE Airtricity

Bord Gáis Energy

Electric Ireland

Energia

Naturgy

68



Sites Q1 2020

Sites Q2 2020

GWhs Q1 2020

GWhs Q2 2020

GWhs H1 2020

Bord Gáis Energy 11 11 616 733 1,350

SSE Airtricity 6 6 274 402 676


Energia 3 3 55 59 113

Naturgy 5 5 186 185 371

Total 33 33 1,422 1,668 3,090



customer numbers. Bord Gáis Energy’s share has fallen by circa fourteen percentage points

between H1 2017 – H1 2020. SSE Airtricity had the largest gains in market share in this segment

during the period.

Figure 60: LDM Market Share Trend (%)

12.6 Gas Market Concentration

The figure below shows the level of the HHI between H1 2016 – H2 2020. There has been a

decrease in the HHI for all gas market segments over time. Significant decreases have been

observed in the domestic, medium-sized non-domestic segments, DM and LDM segments over

the period, while there has been a smoother reduction in the HHI for the IC segment.

0%

10%

20%

30%

40%

50%

60%

H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020

Bord Gáis Energy Electric Ireland SSE Airtricity Naturgy Energia

69


Between H2 2019 and H1 2020 there was a decrease in the domestic, IC, medium-sized non-

domestic, and LDM segments and a small increase in the DM segments. In H1 2020 the HHI for

the medium-sized non-domestic segment remained below 2,000. In H2 2020 the HHI was 2,673

for the domestic market segment (2,701 in H2 2019), 2,473 for the IC market segment (2,502 in

H2 2019), 1,923 for the medium-sized non-domestic market segment (1,964 in H2 2019), 2,173

for the DM market segment (2,141 in H2 2019), and 2,896 for the LDM market segment (3,266 in

H2 2019).

According to the European Commission an HHI above 2,000 indicates a highly concentrated

market. Even though the HHI has decreased in most market segments over time, it remains above

the threshold of 2,000. The CRU will further promote competition for the benefit of energy

customers.

Figure 61: HHI Trends Over Time (H1 2016 – H2 2020)

1500

2000

2500

3000

3500

4000

4500

5000

H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020

Residential IC Medium Sized Non-Domestic DM LDM

70


13. Water Sector Summary of Section

• This section provides information on Irish Water’s customer base.

• In H1 2020, Irish Water provided water services to nearly 1.8 million customers.

13.1 Irish Water Customer Base

13.1.1 Irish Water Customer Breakdown

The figure below provides a breakdown of Irish Water’s customer base in 2019. The CRU will

receive updated figures from Irish Water in 2021. In total, Irish Water serves nearly 1.8 million

customers. Of these customers, c. 1.6 million (or c. 90%) are domestic customers and c. 185,000

(or c. 10%) are non-domestic customers10. Some customers are also mixed-use customers (i.e.

both domestic and non-domestic, e.g. a farm), these are included within the non-domestic

category.

Figure 62: Customer types and amounts

13.1.2 Irish Water Customer Trends

The table below provides further information on the customer breakdown by highlighting how the

number of customers has changed over time. The number of customers has stayed relatively

stable over time. Note that in the table below the number of metered customers (45%) is less than

the number of metered connections (60%). This is due to the customer numbers below reflecting

the number of customer accounts in Irish Water’s systems as opposed to the total number of

10 The figures reported for non-domestic customers are derived from the number of non-domestic connections. There are some differences between the number of customers and the number of connections as some customers have multiple connections.

Total number of cusomters

1,787,711

Domestic

1,602,425

Metered

719,218

Unmetered

883,207

Non-domestic

185,286

Metered

177,380

Unmetered

7,906

71


meters in the ground. The difference is mostly due to Irish Water having a number of installed

meters that are yet to be matched to a customer.

2016 2017 2018 2019 H1 2020

Total number of customers

1,783,465 1,782,115 1,785,995 1,786,685 1,787,711

1. Number of domestic customers

1,599,247 1,597,897 1,600,374 1,601,399 1,602,425

1a. Metered domestic

n/a 717,539 718,520 718,883 719,218

1b. Unmetered domestic

n/a 880,358 881,854 882,516 883,207

2. Number of non-domestic customers

184,218 184,218 185,621 185,286 n/a

2a. Metered non-domestic

n/a n/a 178,196 177,380 n/a

2b. Unmetered non-domestic

n/a n/a 7,425 7,906 n/a

Note: Some cells n/a as data was not reported for that period by Irish Water.

Table 28: Number of Irish Water Customers

13.2 Water Consumption

The CRU has not yet received data for 2020 from Irish Water. Water consumption data for 2020

will be included in our Annual Energy and Water Monitoring Report for 2020.

72

14. Conclusion The purpose of this report is to provide consumers, industry and other interested stakeholders with




The report has covered Irish Water’s supply of water to customers, its engagement with customers

under the First Fix Scheme, Irish Water’s customer base and the demand for water services.

In 2019, there were less interruptions to water supply, with a year-on-year decrease in planned

and unplanned interruptions. Irish Water issued Boil Water Notices for water supplies which served

a combined population of over 11,000 people and Water Restriction Notices for water supplies

which served a combined population of over 1,000 people. In H1 2020, Irish Water provided water

services to nearly 1.8 million customers.

Moreover, this report has detailed electricity and gas retail prices, suppliers tariff plans, along with

domestic and business market shares of suppliers, and market concentration for H2 2020. It has

also presented data for concerning customer switching, new PAYG financial hardship installs,

disconnections, and arrears and payment plans.

Switching has continued in both the electricity and gas markets with 137,860 (6%) electricity

customers and 51,201 (7%) gas customers changing their supplier in H1 2020. Low levels of

switching activity were observed in April, May and June 2020. It is considered likely that the

reduction in switching numbers is at least in part related to the onset of the Covid-19 health

emergency in Ireland in March 2020.

The number of new PAYG meters installed for financial hardship in electricity and gas in H1 2020

decreased compared to H1 2019. This reduction was affected by the suspension of most PAYG

meter installations by ESBN and GNI during the Covid-19 lockdown period. The amount of

disconnections for non-payment of account also decreased in H1 2020 for both electricity and gas

customers compared to H1 2019. The decrease in the number of NPA disconnections in H1 2020

was largely due to the suspension of disconnections due to Covid-19, with no NPA disconnections

carried out in Q2 2020. The CRU continues to support and promote the early intervention by

suppliers to encourage customer engagement and uptake of payment plans and PAYG meters

and to continue to ensure that the disconnection of a customer is treated as a ‘last resort’. The

CRU continues to work with industry to determine what further actions can be taken to limit the

level of disconnections.

A total of six suppliers announced price decreases in the first half of 2020, based on decreased

wholesale costs incurred in previous periods.

In H1 2020, Electric Ireland remained the largest electricity supplier in terms of consumption in the

domestic, small business, and medium business market segments. However, it held the second

largest share in the LEU market, with SSE Airtricity being the largest supplier in this segment. In

gas, Bord Gáis Energy remained the largest supplier in terms of customer numbers in the domestic,

IC, medium-sized, and LDM market segments, while Energia was the largest supplier in the DM

market segment, followed by Electric Ireland and Bord Gáis Energy. The market share of both

incumbent suppliers remained below the threshold at which they were price deregulated. It is worth

noting that incumbent suppliers are now at or below 50% market share in the domestic markets

(Electric Ireland 48% in electricity; BGE 44% in gas).

The CRU commits to continue to monitor all electricity, gas and water market segments and should

it feel that customers are not benefiting, the CRU will take action to improve matters.

73

APENDICES

Appendix 1

Electricity and Gas Prices in a European Context


Compared to semester 2 of 2018, in semester 2 of 2019 domestic electricity prices in Ireland

increased in all bands except band DB. Prices also increased in all bands in Europe and the Euro

Area with the exception of band DD.

In semester 2 of 2019, the average price in Ireland for consumption band DC was 12% above the

Euro Area average, while the average price for consumption band DD was 6% above the Euro

Area average.

Figure 63: % difference between domestic electricity prices and Euro Area Average (market share of band)

The tables below show average domestic electricity prices in Ireland and the Euro Area for the

main consumption bands, bands DC and DD, over the last four semesters.

Average Domestic Electricity Prices, Band DC (36.9%)

S1 2018 2018S2 2019S1 2019S2

Euro Area 0.2195 0.2248 0.2277 0.2275

Ireland 0.2369 0.2539 0.2423 0.2546

50%

70%

90%

110%

130%

150%

170%

190%

210%

Euro Area Band DA (2.6%) Band DB (10.7%)Band DC (36.9%) Band DD (41.5%) Band DE (8.2%)

74

Average Domestic Electricity Prices, Band DD (41.5%)

2018S1 2018S2 2019S1 2019S2

Euro Area 0.2023 0.2085 0.2101 0.2084

Ireland 0.1958 0.2157 0.2062 0.2209

Domestic Gas

Compared to semester 2 of 2018, in semester 2 of 2019 domestic gas prices in Ireland decreased

in band D1 and increased in bands D2 and D3. Prices also increased in band D2 the Euro Area

but decreased in bands D1 and D3.

In semester 2 of 2019, the average price in Ireland was 12% above the EU average and 2% below

the Euro Area average.

Figure 64: % difference between domestic gas prices and Euro Area Average (market

share of band)

The table below shows average domestic gas prices in Ireland and the Euro Area for consumption

band D2 over the last four semesters.

Average Domestic Gas Prices, Band D2 (91.7%)

2018S1 2018S2 2019S1 2019S2

Euro Area 0.0660 0.0755 0.0709 0.0770

Ireland 0.0632 0.0761 0.0683 0.0764

50%

60%

70%

80%

90%

100%

110%

EU 28 Band D1 (4.9%) Band D2 (91.7%) Band D3 (3.4%)

75


Compared to semester 2 of 2018, in semester 2 of 2019 non-domestic electricity prices in Ireland

increased in all bands except bands IE and IF. Prices also increased in all bands in the Euro Area

with the exception of band IF.

In semester 2 of 2019, the average price in Ireland was 10% above the EU average and 5% above

the Euro Area average.

Figure 65: % difference between non-domestic electricity prices and Euro Area average,

excluding VAT and other recoverable taxes and levies (market share of band)

The table below shows average non-domestic electricity prices in Ireland and the Euro Area for

consumption band IB over the last four semesters.

Average Non-Domestic Electricity Prices, Band IB (25.2%)

2018S1 2018S2 2019S1 2019S2

Euro Area 0.1437 0.1456 0.1548 0.1531

Ireland 0.1565 0.1610 0.1651 0.1643

70%

80%

90%

100%

110%

120%

130%

140%

Euro Area Band IA (5.1%) Band IB (25.2%)

Band IC (13.6%) Band ID (26.3%) Band IE (8.6%)

76

Non-Domestic Gas

Compared to semester 2 of 2018, in semester 2 of 2019 non-domestic gas prices in Ireland

decreased in all bands except band I4. Prices also decreased in all bands in the Euro Area with

the exception of band I1.

In semester 2 of 2019, the average price in Ireland was 5% above the EU average and 1% below

the Euro Area average. The average price in Ireland for consumption band I4 was 1% above the

EU average and equal to the Euro Area average.

Figure 66: % difference between non-domestic gas prices and Euro Area average,

excluding VAT and other recoverable taxes and levies (market share of band)

The table below shows average non-domestic gas prices in Ireland and the Euro Area for

consumption band I4 over the last four semesters.

Average Non-Domestic Gas Prices, Band I4 (33.5%)

2018S1 2018S2 2019S1 2019S2

Euro Area 0.0317 0.0320 0.0336 0.0308

Ireland 0.0342 0.0388 0.0342 0.0322

70%

75%

80%

85%

90%

95%

100%

105%

110%

115%

120%

Euro Area Band I1 (9.7%) Band I2 (17.7%)

Band I3 (23.5%) Band I4 (33.5%)

77

Annex 1

Overview of Business Electricity Pass Through Costs and Charges for 2019/20

Whilst international fuel prices are a key driver of electricity prices (and outside of Ireland’s control),

some of the cost components in a business customer’s electricity price are directly regulated and

suppliers are required to pay them. Changes to these regulated charges generally come into effect

on 1 October annually. While it is the decision of each supplier whether or not to pass through such

costs to final customers, it is likely that most suppliers pass through all such costs. These costs,

with the addition of the applicable taxes, are referred to as ‘Pass Through Costs’.

Pass Through Costs include the following charges and are detailed in the information paper ‘Pass

Through Costs for Business Electricity Customers from 1 October 2019 to 30 September 2020’

which can be found here.

Cost Charge Description

Generation

Capacity Payments

Payment made to generators for their availability, based on the capacity provider’s awarded

capacity and the capacity auction price, separate from energy

production.

Suppliers pay capacity charges.

Market Operator

Charges

Charges levied on generators and suppliers for the operation of the

wholesale markets.

Nominated Electricity

Market Operator

Charges

Charges paid by market participants to trade in the ex-ante markets.

Imperfection Charges Constraint costs on the network are recovered by imperfection charges.

Networks

Network Transmission

Use of System charges

(TUoS)

Charges levied for the building, maintenance and operation of the

transmission network.

Network Distribution

Use of System charges

(DUoS)

Charges levied for the building, maintenance and operation of the

distribution network.

PSO

Public Service

Obligation Levy

(PSO)

Levied for support for renewables, security of supply and indigenous

fuels (peat).

https://www.cru.ie/wp-content/uploads/2019/09/CRU19116-Pass-Through-Costs-for-Business-Electricity-Customers-20192020.pdf

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Annex 2

Overview of Gas Pass Through Costs and Charges for 2019/20

This section describes the network related elements for gas business customers. As with the

electricity charges, these charges are approved by the CRU. The carbon tax charge is also

included in this section.

Gas Market Segments

For the purpose of the CRU’s reporting, the gas market is comprised of three distinct sectors which

is dependent on the Annual Quantity (AQ) consumed at the site. Annual Quantity is an estimate of

the amount of gas that will be consumed at a site within a given year and is usually based on

historic consumption at a site. In addition, your Supplier is required to book capacity on the network

for peak day usage. This is known as the Supply Point Capacity (SPC).

Business customers are classified by the meter type, which fall into three categories; Non-Daily

Metered (NDM), Daily Metered (DM) and Large Daily Metered (LDM). Each category of business

user is dependent on the gas consumption expected at the site.

• Large Daily Metered: AQ above 77,5000 MWh

• DM: AQ between 5,500 MWh and 57,500 MWh

• NDM: AQ below 5,500 MWh

In general, DM and LDM customers will have a site-specific consumption. This would include

factories, dairies and power generation, and therefore deriving an average for this type of site

would not derive a useful average.

Consumption

LDM and DM customers’ consumption is atypical in so far as deriving an average would be difficult,

as the range of customer types varies from power generation plants to dairies. However, as the

network operator GNI does generate average consumption profiles for the NDM sector, where all

domestic customer and smaller businesses are connected. These are known as IC1, IC2 and IC3.

When GNI derives average profiles, it takes historic consumption and long-term weather patterns

into account, and also corrects these for any anomalies e.g. if weather was abnormally warm or

cold. This assists GNI in deriving the AQ at each point which is based on the annual consumption

at each point as well as the SPC which is the Peak day demand at the point.

Average yearly consumption per gas point per category as modelled by GNI is published in the

Gas Networks Ireland NDM Profile Model Methodology, available here, and also shown below:

https://www.gasnetworks.ie/corporate/gas-regulation/service-for-suppliers/code-of-operations/related-documents/ndm-profiles/

79

Category Band (AQ) Number of gas points

Average yearly consumption per gas point

IC 1 Below 73,000 kWh 15,760 25,876 kWh

IC 2 Equal to or above 73,000 kWh and SPC less than 3,750 kWh

9,312 183,232 kWh

IC 3 SPC equal to or greater than

3,750 kWh 1,932 1,328,313 kWh

Network Charges

There are two sets of charges that apply to business gas customers dependent on whether the

customer is connected to the high-pressure transmission network or the low-pressure distribution

network. All power generation and large businesses are connected to the transmission network

and therefore only pay transmission tariffs. All other customers are connected to the distribution

network, and therefore must also pay distribution tariffs. This is because in the case of distribution

connected customers, all gas flows through the transmission network initially before entering the

distribution network.

In the case of both transmission and distribution the applicable charges are based on two charges:

commodity charges which are based on actual flows of gas (AQs) and capacity charges which are

based on “booking “space within the network as per the SPC described above.

Distribution tariffs

The Distribution Use of System (DUoS) charges are calculated annually based on the ‘allowed

revenue’ of GNI which are set out in the Price Controls that CRU publish on a 5-year basis.

Revenues are recovered on an 80:20 split between capacity and commodity charges. The

approved charges are available in CRU19062 ‘Gas Networks Ireland Distribution Tariffs and

Allowed Revenue 2019/20 Information Note’.

Category by Annual Quantity Capacity Charge (c/pk day kWh)

<=73 MWh 149.6290

> 73 MWh - <=14,653 MWh 132.4579 – 3.8508 * Ln(MDQ)*

> 14,653 MWh - <=57,500 MWh 330.9276 – 47.4883 * Ln(MDQ)

> 57,500 MWh 40.8092

The capacity and commodity unit charges are determined by inserting the Maximum Daily Quantity

into the relevant formulae (MDQ measured in MWh). The results of the formulae are in terms of

c/peak day kWh and c/kWh respectively.

https://www.cru.ie/wp-content/uploads/2019/05/CRU-19062-Gas-Distribution-Tariffs-2019-20.pdf

80

Category by Annual Quantity Commodity Charge (c/kWh)

<=73 MWh 0.3163

> 73 MWh - <=14,653 MWh 0.2527 - 0.0246 * Ln(MDQ)

> 14,653 MWh - <=57,500 MWh 0.2944 - 0.0388 * Ln(MDQ)

> 57,500 MWh 0.0576

GNI has a distribution tariff calculator which allows you to input your distribution entry and/or exit

point requirements which will be used to calculate the applicable distribution tariff.

Transmission tariffs

Tariffs for the transmission system are based on an entry-exit regime. This means that customers

pay for putting gas onto the system and for off taking gas from the system. Similar to the distribution

system, these charges recover the allowed revenues for GNI.

The transmission system has three entry points; Moffat in Scotland where the GNI system joins

the UK gas system, Inch in Cork and Bellanaboy where Corrib gas enters the network. For each

of these there is an entry capacity tariff applicable. In addition, there is a single commodity charge

(per MWh) that applies regardless of the entry point.

In addition, there is a capacity and commodity charge for exiting the network. The same charge

applies regardless of where gas is taken off the network. The approved charges are available in

CRU19061 ‘Gas Networks Ireland Transmission Tariffs and Allowed Revenue 2019/20’

Information Paper and are also set out below:

Moffat entry capacity €301.345

Inch entry capacity €53.027 (storage entry)

€105.557 (production entry)

Bellanaboy entry capacity €619.442

Entry Commodity €0.103

Exit Capacity €367.658

Exit Commodity €0.216

To calculate the cost on a per customer basis, similar to the distribution network, the capacity

booked and the commodity i.e. flow must be known. The capacity tariffs above are based on an

annual product which means that for each MWh of capacity booked, the customer can use that

amount each day of the tariff year which runs from October to September. In addition, customers

can purchase a short-term product which is capacity booked for a specific period of time. These

short-term capacity products are available as Quarterly, Monthly, Daily and Within Day products.

The charges for each of these products is based on a multiplier to the annual product. The decision

to purchase either an annual or a short-term product is usually dependent on the typical

consumption profile of a particular customer.

https://www.gasnetworks.ie/corporate/gas-regulation/tariffs/distribution-calculator/

https://www.cru.ie/wp-content/uploads/2019/09/CRU19061-Gas-Transmission-Tariffs-2019-20.pdf

81

In addition, commodity charges apply on a per MWh basis. These are flow based and vary from

customer to customer.

The transmission calculator allows you to input your transmission entry and/or exit point

requirements which will be used to calculate the applicable transmission tariff.

Carbon tax

Since 1 May 2012 the rate of carbon tax has been €0.0037 per kWh. This is subject to VAT of

13.5%, making a total of €0.0042 per kWh. In May 2020 the rate of the carbon tax increased to

€0.00471 per kWh excluding VAT and €0.0053 per kWh including VAT. All-natural gas suppliers

in Ireland have to levy the carbon tax on their customers. Some natural gas customers are exempt

from paying carbon tax. These include:

• Natural gas consumers who use it for the purpose of generating electricity.

• Natural gas manufacturer consumers, where it is used for the purpose of chemical

reduction.

• Natural gas manufacturing customers where it is used in electrolytic or metallurgical

processes.

Partial exemptions from paying carbon tax apply to:

• Suppliers dealing with the cogeneration of environmentally friendly heat and power, as

decided by the Minister for Finance.

• Industrial and manufacturer consumers covered by a greenhouse gas emissions permit

that has been issued by the Environmental Protection Agency.

https://www.gasnetworks.ie/corporate/gas-regulation/tariffs/transmission-calculator/

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