Michael Culloty National Social Policy and Communications Officer MABS National Development Ltd.

1. Energy ActionFuel Poverty ConferenceDublin Castle6 February 2012Energy Affordability Policy - Challenges Michael Culloty National Social Policy and Communications Officer MABS National Development Ltd.

2. Outline Agenda • About MABS • Objectives • Utility debt - MABS Statistics • Affordable Energy Strategy

3. MABS – Free, Confidential and Independent Objectives: • The provision of money advice to people in debt or in danger of getting into debt • Empower them by providing knowledge and skills • Promote change in policy and practice • Focus on low income families

4. MABS Statistics Statistics: • In excess of 26,000 new active cases in 2011 • 52% increase in clients approaching MABS since 2009 • 15% increase in Helpline calls in 2010/11 (125% increase since 2009) • 70% of clients are social welfare recipients • 47% of clients have a mortgage

5. Energy Utility/MABS Operational Protocol Basic Principles: • is designed to improve operational effectiveness of the energy suppliers/MABS engagement • enables and commits the suppliers and MABS to work together effectively to help clients address debt problems in an effective and realistic manner • accepts that each supplier adopts a different approach to debt recovery and each case of indebtedness is unique • recognises the concepts of full disclosure and debt settlement • commits energy suppliers and MABS to work together to formulate a mutually acceptable, affordable and sustainable repayment plan Note: Protocol focus is on process – but obviously the goal is to avoid disconnection

6. MABS Statistics contd. No. Of Clients Approaching with Energy Debts • 2007 to 2011 Increase of 150% Client indebtedness approaching MABS with Energy Debts • 2007 to 2011 Increase of 145%

7. MABS Statistics contd • Budgeting Weekly: Year Quarter Weekly AV usage as % of Weekly Av Income 2007 Q1 9% €445   2011 Q1 11% €489

8. MABS Statistics in Context – EU SILC

9. MABS Stats contd.

10. Causes of Energy PovertyStrategy for Affordable Energy – three factors/drivers Identified • Household Income • Income adequacy – enough income to participate in society and exercise choice - Persistent Income inadequacy – provides recurrent household budgetary management problems. • Lack of savings/ access to credit - for contingencies • Creditor Pressure - Lack of Prioritisation • Lack of money management/budgeting skills

11. Causes of Energy PovertyStrategy for Affordable Energy – three factors/drivers Identified 2. Price of Energy • Price Fluctuation • Unbanked – no access to cheapest tariff – poor energy credit history • Prolonged cold spells

12. Causes of Energy PovertyStrategy for Affordable Energy – three factors/drivers Identified • Energy Efficiency of the Building • Reduction in demand essential • Thermal efficiency is basic • Capital Investment not income support the priority

13. Affordable Energy Strategy – Key Tasks Vulnerable Consumers and Codes of practice -(19 , 23, 24 & 45) • A definition: MABS recognises a vulnerable consumer to be someone who for reasons of age, health or disability, the disconnection of gas or electricity presents a clear threat to their or a member of their household’s health or wellbeing. • Codes Supervision – More proactive • Code for non- regulated suppliers – supervision vital • Reporting – verification – will the Energy Utility/MABS Operational Protocol be included

14. Affordable Energy Strategy – Key Tasks Fuel Switching (12 & 20 & 21) • System switching – Local knowledge, capital investment • Price Switching - Low tariffs available to low income consumers • - Available through the proposed BPA – standing orders Aligning income supports (14)– Energy efficiency and demands on income • This demands individual energy and income/ expenditure audits

15. Affordable Energy Strategy – Key Tasks Metering: (16) • Acceptance of metering • Self Disconnection • Access to payment methods Avoiding disconnection (29) • Arrears agreements to be affordable and sustainable • No disconnection for Domestic ‘can’t pay’ consumers • Permission for third party involvement before disconnection

16. Affordable Energy Strategy Key Tasks • Strengthening consumer protection (CER) (17) • Sharing of Data (15) (29) – possible clusters - tailored responses • Single Points of Contact (37 & 38 & 39) a Local central point for information and advice • Information and education (33 to 36) – a Local central point for information and advice • Developing local responses (42) – strong working partnerships

17. MABS Thank you