Electricity supplier EDP already has been fined by the regulator for making it difficult for those on low incomes to apply for and receive the cheaper ‘social tariff’ rate.
The €7.5 million fine has been challenged by the EDP boss, António Mexia, whose lack of PR skills has meant his €2.1 million pay packet also has been dragged into the public arena.
Now the gas supplier Galp Power also has been accused of "violations in applying the social tariff" for the poorest in society and its directors’ pay packets may soon receive the same analysis.
The miserliness of the two major energy supply companies in not promoting cheap rate fuel supplies to their very poorest customers defies polite description and both want the government, ie the taxpayer, to pick up the tab for discounted fuel supplies.
The offences committed by Galp can mean fines of up to 10% of its massive turnover so it is little surprise that the giant company also has contested the fine.
Sources at the energy regulator ERSE said that Galp Power was informed in May 2016 that it was not playing fair and was going to be fined alongside EDP for “not fulfilling obligations under the law applicable to economically vulnerable customers.”
In the document, the regulator states that “both suppliers were notified of the respective illegalities by not applying social tariffs and extraordinary social support rates to economically vulnerable consumers, not making clearly visible on invoices the social discounts available, and the late disclosure of information about the existence social tariffs for electricity supply."
In July, a new automatic social tariff for electricity and natural will come into effect. The scheme matches data from Social Security and the Tax Authority so that poor families will easily be identified and switched to the appropriate social tariff discount.
This new legislation is only six years late but finally is being enacted by the Secretary of State for Energy, Jorge Sanches Seguro, who signed a bit of paper last week to make sure the electricity and gas companies have zero excuse for ripping-off their poorer customers.
Meanwhile, lobbying continues for the government to pick up the social tariff tab, rather than the energy supply companies but the government is clear that the energy companies’ customers will continue to subsidise their poorer brethren, rather than the general taxpayer.
