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Eir’s parent company hit with €2.45m penalty

Communications regulator ComReg has handed the company that owns Eir a penalty of €2.45 million after the parties settled legal proceedings linked to the overcharging of customers.

The regulator had applied to the High Court last November for a restraining order under section 46(4) of the Communications Regulation Act 2002, requiring Eircom Limited to cease contravening sections of the legislation relating to overcharging.

This followed enforcement actions taken by ComReg against the telecoms company for 26 such breaches in 2015, 2017 and 2018. Two further ComReg investigations into overcharging in later years also formed part of the proceedings.

As part of the settlement, Eircom will implement a series of ‘backward-Looking measures” to identify customers who have been overcharged historically and will refund these customers appropriately

Billing processes

ComReg estimates that these measures will cover refunds of around €6.7 million for around 76,000 customers, but it warns that they will take “some time” to complete.

The measures will focus on:

• Customers that were incorrectly charged due to an issue with a “broken bundle” on the customers’ account,
• Customers that were charged in circumstances where Eircom did not process customers’ requests that their service be ceased, and
• Customers that were charged early-cease charges in circumstances where the customer was allowed to cancel without penalty.

Eircom will implement a series of ‘forward-looking measures’ to improve its existing billing processes.

The company will also appoint an independent auditor to review the effectiveness and implementation of both sets of measures.