‘No further increases’ for consumers despite rising fuel costs
That was confirmed yesterday by a spokesman for the energy regulator, Tom Reeves.
Consumers face a 2-3% electricity cost hike while Bord Gáis has been granted an increase of 2% - 3%. Both increases come into effect next month.
Sanctioning price hikes was a “once a year exercise and there will be no further increases granted unless it becomes absolutely critical,” Mr Reeves said.
It was vital from a business point of view that industry knows what it’s facing in terms of energy charges in order to plan its operations.
“That’s the way it has been and there are no proposals to deviate from that practice,” he said.
Oil prices dipped below $66 per barrel yesterday after a recent record run, but tensions in Iran will likely sustain the upward trend, analysts warned.
New York’s light sweet crude for September delivery, lost 39 cents to $65.88. It reached $67.10 on Friday, its highest point since 1988.
To start to hurt however, analysts suggest the cost of oil would have to go above $85 per barrel before it impacts on global economic growth.
Sceptics argue economists are in denial about how serious this oil crisis is.
Supplies are running down and the market is being constrained by lack of refining as well as production capacity, which some analysts insist will see oil prices continuing to rise.
In London prices hit a new high of $66.85 dollars yesterday as political uncertainty continues to undermine the market.
President George Bush’s refusal last Friday to rule out the use of force against Iran over its resumption of nuclear activities only compounded the uncertainty.
Iran is the second largest producer in the Organisation of Petroleum Exporting Countries (OPEC) after Saudi Arabia, producing 4.2 million barrels per day.
Concerns also exist about the Saudi’s ability to continue producing oil at current levels. Rising prices could start a global recession.
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