ISME slams proposed ESB increases

ISME has requested an urgent meeting with Minister Dermot Ahern after the ESB looked for a double digit electricity price hike.

The business organisation claimed that if the hike is approved, electricity prices will have increased by more than 40% in three years - almost four times the rate of inflation.

ISME sees such a move as detrimental to the viability of many small businesses and Ireland's competitiveness as a whole and intends to raise the matter with the Minister for Communications, Marine and Natural Resources.

It also believes that any further price rise will have a negative impact on inflationary pressures.

Chief Executive Mark Fielding said today: "The association is shocked at the audacity of ESB management to seek an increase which would effectively hike electricity costs by more than 40% over the last three years, particularly on the day that they announce 56% increase in their profits.

"Over the last number of years, Irish businesses have experienced dramatic increases in their production costs, including labour, insurance, transport and energy.

"A further rise in electricity prices will be seen as the last straw for many companies, in a country that is proving to be already too expensive in which to operate," Fielding added.

ESB Chairman Tadhg O'Donoghue earlier blamed the oil crisis for the proposed price rise, stating that fuel accounts for 50% of energy generation costs and 30% of consumer supply costs.

Earlier this year it planned to seek modest increases, but this was not possible now, according to the ESB chairman.