Home Economics: I feel like I am being bundled into a home energy package that I don’t want

Question

I am currently with Electric Ireland for a dual fuel bundle for my home. I have a smart meter but I’m on the standard 24-hour tariff, which suits me. I’m in the process of changing supplier.

One supplier, which had rates that I liked for standard electricity, replied stating that because I have smart meter, I would have to take their smart meter rates.

I’m an OAP and I’m not interested in putting on my washing machine and any other electric appliances after 11pm. I’m curious if companies are allowed to do this. If so, I’m stuck with Electric Ireland.

​Answer

The short answer is no, they are not. By way of some background, the National Smart Metering Programme will replace all electricity meters in Ireland, and to date, over 1.6 million smart meters have been installed. The rollout has been focused on domestic customers with MCC01 (24-hour) and MCC02 (day/night) meters.

“When a smart meter is installed, it remains on the existing ‘meter configuration code (MCC)’,” says a spokesperson for the Commission for Regulation of Utilities.

“For example, a customer on a flat rate/24-hour tariff before the smart meter is installed, is on MCC01.

If the customer wishes to move to a time-of-use tariff, the meter needs to switch to a different MCC (either MCC12 or MCC16), in order to send the necessary consumption information for billing purposes.

“Once changed, it cannot revert back. However, this does not prevent the customer moving back to a flat-rate tariff or stop energy suppliers from offering customers on MCC12 or MCC16 a flat rate tariff.”

Some companies have become more competitive on time-of-use tariffs, but they certainly got bad press early on for offering what seemed like cheaper rates for part of the day, only to whack them up at the times you needed energy (e.g. 5pm-7pm). Do they think people will eat at 4pm or 8pm to avoid this?

I’m with you on the electrical appliances — it’s far too dangerous to run items like tumble driers overnight and I wouldn’t do it.

So, in short, you do not have to take up a smart tariff when you have a smart meter installed.

I’d have it out with the supplier or simply move to another. Check bonkers.ie or switcher.ie for other companies that will be more helpful.

​Send your property questions to [email protected]. Sinéad presents ‘The Home Show’ on Newstalk from 8am on Saturday.

The Ryan Review

There’s a huge push on for energy upgrades. Banks offer (slightly) cheaper mortgages for A and B-rated homes, the repayment time in terms of bills savings has reduced, and it’s now no longer strange to see streets festooned with solar-panelled rooftops.

And then there’s the generous grant schemes which help to pay for it all. But even with the maximum award, it still leaves the average homeowner with anything from half to two-thirds of the bill.

Enter the State loan — €500m has been put aside to lend to people (in tranches of €5,000 to €75,000) to act as a financial carrot.

Underwritten by the European Investment Bank and aided by the Strategic Banking Corporation of Ireland and SEAI, participating banks (and we’re not told how reluctantly or otherwise they had to be dragged into the initiative), will offer “low cost” loans to people struggling with the bills.

PTSB is the first over the line with 3.55pc on offer. The others, including seven credit unions, will follow. From a personal loan perspective, that’s a super rate. It’s unsecured over 10 years.

You would expect to pay double that for a car loan, or quadruple for ‘home improvements’ or an overdraft. But it’s not stellar compared to mortgage rates. That said, you don’t have to go through a mortgage process to get it.

Will it encourage even more uptake? Especially while most householders are amid a cost-of-living crisis, albeit an easing one?

It’s a big gamble from all parties, and still a big ask of consumers.

Get ahead of the day with the morning headlines at 7.30am and Fionnán Sheahan’s exclusive take on the day’s news every afternoon, with our free daily newsletter.