ESB defends 2.5% power price hike

The Electricity Supply Board tonight defended the 2.5% increase in electricity bills to be introduced next year.

The Commission for Energy Regulation (CER) said it favoured the increase in a consultation document published tonight.

It follows a 13% increase in electricity prices last year and a 10% increase in 2003.

But the ESB said it would add just €3 to the average household bill of €120.

“At two euro a day, it’s still good value. We’re not the most expensive in Europe, Germany is way higher than us,” said a spokesman.

It had been feared that electricity prices would increase by to 10% due to the ESB’s plans for an increase in investment in its network and the soaring prices of oil and gas.

However, the CER did not approve all of the ESB’s planned spending in areas such as wages and power generation on the grounds that it was not necessary.

The 2.5% increase will be introduced in January.

Fuel costs represent 50% of the cost of generating electricity and the ESB Ireland must import coal, oil and gas.

“The reality is that we have to import everything and we’re at the end of the line,” said the spokesman.