ESB price hike warning despite 55% profit increase

The ESB has forecast a 'double-digit' price hike for customers, despite an after-tax profit increase of 55.6% to €249m in 2003.

Operating profit was up 41% to €354m.

The news means that the State will receive a dividend of €67m.

Chairman Tadhg O'Donoghue said that earlier this year the ESB had hoped to be seeking modest increases from the Commission for Energy Regulation (CER).

However, the present fuel crisis means this is no longer possible as fuel accounts for 50% of energy generation costs and 30% of consumer supply costs.

The ESB is currently involved in a number of projects to renew both the electricity infrastructure in Ireland as well as pursuing new markets outside of Ireland, O'Donoghue said.

A decision on the future of its 900mw coal-burning plant at Moneypoint, which needs a €250m investment to meet EU environmental requirements, is needed by the end of next month.

O'Donoghue was speaking at the company's annual general meeting today.