Wednesday, September 12, 2012

SVP condemns gas price hike

The Society of St. Vincent de Paul (SVP) has stated that the increase of 8.5% in gas prices will cause serious difficulties for those on low and declining incomes.  

The charity spent over €3m in 2007 assisting householders to keep homes warm and to avoid disconnections, and by 2010 that figure had almost tripled to just under €9m.

SVP has condemned the decision of the Commission for Energy Regulation (CER) to permit Bórd Gáis Energy (BGE) an increase of 8.% in gas prices.  

Coupled with the price increase of 21.72% granted last year, this increase will compound what they describe as unfolding crisis in the household energy market.

"SVP, the biggest voluntary charitable organisation in the country, is already dealing with a big increase in calls for help from families and individuals in serious economic difficulties," said John-Mark McCafferty, SVP Head of Social Justice.  

He explained that Bórd Gáis is using a drop in consumption of gas as one of the reasons for the increase sought, but the drop is due to the economic recession and people unable to afford gas.

SVP acknowledges the effects of rising world energy prices. However it stated that there has been insufficient consideration for the problems this latest rise will cause families and individuals, who are either on fixed, declining or low incomes, or who are in cold homes with poor energy efficiency.

“Where does this price increase leave Government’s affordable energy strategy?” asked John-Mark McCafferty.

It is estimated that the price rise will add €70 onto the average annual household gas bill.  

Age Action has described the price increase as, "a huge blow to many older people.” 

A spokesperson for the group told RTÉ News, “The continuing problem of energy poverty must be taken seriously by the government who must guarantee that no further cuts to either the household benefits package or the fuel allowance will be considered."

An Age Action Conference in February 2011 heard that inability to pay for home heating could have contributed to up to 2,000 winter deaths. 

The research stated that between 1,500 – 2,000, “excess winter deaths,” occurred on the island of Ireland during the 2009 - 2010 winter.

A separate decision by the regulator to increase charges for use of the electricity network could add 3% to 3.5% on to electricity charges. 

Depending on the supplier, this increase would cost the average household an extra €25 - €28 a year for electricity.