ESB may increase home electricity charges next year

THERE was good news and bad news for consumers as the ESB said it may raise charges next year, while two vintners organisations were found guilty of contempt of court in announcing a one-year drinks price freeze effective from last December.

Speaking at the MacGill Summer School in Glenties, Co Donegal, ESB chief executive Padraig McManus guaranteed that such pricing moves would not happen this year, and would have to be looked at over an extended period of time.

However, the ESB has been warned not to see consumers as a “soft target” for price hikes in order to reduce costs for businesses.

Labour’s energy spokeswoman Liz McManus said: “Price increases for consumers should be a last resort. Increased electricity costs in the short-term are due to the Government policy of moving to more renewable energy generation, before consumers are targeted the Government should look at the dividend it takes from the ESB each year.”

Mr McManus said the ESB may consider raising the price of domestic electricity to help reduce energy costs in the industrial sector.

Fine Gael energy spokesman Simon Coveney said the cost of doing business in Ireland is too high and this was having “dire consequences” for many businesses.

Meanwhile, the High Court found the Licensed Vintners Association (LVA) and the Vintners’ Federation of Ireland (VFI) guilty of contempt of court in announcing a one-year drinks price freeze effective from last December.

Commenting on the decision, chief executive of the Consumer Association of Ireland Dermott Jewell, said it provided publicans with an opportunity to reduce prices.

“Freezing prices fell a good way short given that prices were so high. This provides an opportunity for reductions and that would be good news on the jobs side and for consumers,” he said.

Mr Jewell was also critical of the ESB announcement that it may increase prices next year.

“We have been faced with significant price increases in recent years. This is the last thing we need as any increases in light and heat costs affect both businesses and consumers,” he said.