ALONE: Spiralling arrears, energy costs a serious health threat to older people

45% of financially challenged older people face problems with utilities; If energy credits are withdrawn, supports targeted at older people must fill the gap

ALONE, the organisation that supports older people to age at home, today expressed alarm at reports of spiralling arrears on energy bills, as well as the prospect of costs related to Storm Éowyn being passed on to consumers and making bills higher again.

Speaking after the release of new figures from the Commission for Regulation of Utilities (CRU) which showed almost 440,000 domestic gas and electricity customers were behind on their bills in December, ALONE CEO Seán Moynihan said:

“The CRU figures are deeply concerning, and because they relate to last December, before the January cold snap and the impact of Storm Éowyn. It’s alarming to think of anyone – but particularly older people – carrying those arrears into a prolonged spell of bad weather, when heating their home was so essential to their health”.

Moynihan also expressed concern at the prospect of repair costs from Storm Éowyn being passed onto customers. “We work closely with energy providers to protect the most vulnerable older customers, and that relationship is vital and valued. But Storm Éowyn was a life-threatening situation for many older people; many were left deeply vulnerable by power cuts and loss of phone and internet coverage, as well as the financial impact. That burden, which is ongoing in many cases, should be taken into consideration”.

ALONE’s evidence reveals that for those people who come to us with financial support needs, 45% cite utility bills as their main area of concern. With the latest figures on arrears, the prospect of storm damage appearing on energy bills, and the possibility that government energy credits may not be retained this year, Moynihan said that older people needed certainty and consideration:

“The soundings from government suggest that universal energy credits might not be forthcoming this year; in that case, we would strongly urge that targeted supports for those on lower incomes be strengthened for older people and other vulnerable sections of the population. Usage will fall from now on, but prices are trending upwards so it’s very difficult for anyone on a fixed income to catch up with these arrears.”

Moynihan continued: “For many older people, the safety net of energy supports takes away the anxiety of heating and powering your home. This issue will be raised again in September/October when the Budget is announced and heating becomes a bigger priority ”.

ALONE has consistently called for the state pension to be benchmarked to keep pace with a rising cost of living; in addition, ALONE is calling for the Fuel Allowance to be benchmarked, season expanded and easier access to the entitlement; ease of access and application for the Fuel Allowance is an issue consistently raised by older people supported by ALONE.

A complex application process is also a barrier to older people accessing Sustainable Energy Authority of Ireland grants for retrofitting homes, as are the upfront costs incurred by those ineligible for full coverage.

Moynihan pointed out that both short-term and longer-term structural measures are required to protect those vulnerable to energy poverty:

“Until we benchmark the state pension – and we need that to happen soon – energy credits will have to fill the gap that just keeps widening. Energy poverty is a public health issue – with costs still rising, and our population ageing, it’s a challenge that can’t be put off to the future”.