Power chiefs forced to explain higher bills
Wednesday December 10 2008
Top brass at ESB have explained why consumers are paying vastly more for their electricity bills this year.
The company's chief Padraig McManus and chairman Loch-lann Quinn appeared before the Joint Oireachtas Committee on Communications, Energy and Natural Resources.
The meeting examined the issue of energy pricing after the ESB securing a 17.5pc increase in prices in August this year.
Committee chairman, Deputy MJ Nolan, said: "Rising energy bills are an issue of concern for everyone. In these difficult economic times, we must ensure that domestic and commercial consumers receive the best possible value from the agency that provides the majority of the country's energy."
The Commission for Energy Regulation (CER) announced earlier this month that energy prices would drop by about 1pc in January as a result of the fall in the worldwide price of oil.
It said the decrease was possible because of the sale of some ESB power stations and a rebate of €300m announced by the company last July.
It was able to leave gas prices unchanged as Bord Gais decided to pass a rebate of €8.5m on to its customers.
But the CER warned that some users, who use more than the average amount of electricity, might see their bills rise by up to 2pc.
Those who use less than the average could see their bills fall by up to 2pc, it added.
Increase
Bord Gais had been seeking an average price increase of 3.9pc, while the ESB had been seeking a rise of 5.6pc.
The ESB already secured a 17.5pc increase in August while Bord Gais was allowed to raise its tariffs by a fifth in September.
The next review of prices is not due until October next year. But the CER has not ruled out having an interim review before then, if the price of energy continues to fall on wholesale international markets.
The decision by the CER earlier this month was broadly welcomed by consumer and business lobby groups.
The groups continue to question why gas and electricity rates here are so far above the EU average.
The CER, which has responsibility for rubber-stamping any price changes, said recent falls in international fuel costs meant planned increases were no longer needed.
- Cormac Murphy
