ISME condemns application for electricity price hike

ISME has condemned an ESB application for an increase in electricity prices.

The ESB has reportedly applied for a price increase of up to 13% this year.

The independent business organisation has called on energy regulator Tom Reeves to dismiss the demand.

ISME Chief Executive, Mark Fielding said: "The application for a further increase in electricity costs is completely unjustified and, if granted, will result in a cumulative 40% increase in electricity costs in the last three years, almost four times the rate of inflation in the period.

"If this request is approved, it will seriously call into the question the bona-fides of the Energy Regulator, who has patently failed to control the cost of electricity in Ireland and as a consequence, has seriously added to the cost base of small business over the last number of years.

"The idea of competition is that it should lead to lower prices and a greater choice for the consumer. ISME members' experience has been exactly the opposite and one has to question the policy being pursued by the Regulator”, he said.

Fielding called on the Minister for Communications Marine and Natural Resources, Dermot Ahern, to prevent a further increase in energy costs.

Mr Fielding said: "The question needs to be posed, whether it is merely a coincidence that an application for a further price hike is forwarded at a time when ESB is fending off threatened industrial action on foot of a further 18% wage increase demand by their employees.

"The excuse provided with regard to increased oil costs is a red herring and an opportunistic attempt to once again pull the wool over the meek eyes of the regulator and should not be countenanced.

"Not only is the business community expected to pay an exorbitant increase in electricity, if granted, we will also be expected to put up with an inferior or no service if industrial action is approved."