Consumer agency slams 17.5% ESB rise

The National Consumer Agency has questioned the decision by the Commission for Energy Regulation (CER) to approve an interim ESB price increase for households and businesses of 17.5% effective from August 1.

It said that while costs were going up shortly the company’s provision of 300 million to help offset electricity prices for consumers would not come into effect until January next.

National Consumer Agency chief executive Ann Fitzgerald said the increases would hit consumers hard.

She said the price of energy had risen sharply on world markets in recent months, but from the consumer’s point of view they were tied to supplies from the ESB because of a lack of competition in the energy market here.

Ms Fitzgerald said they would like to see the ESB’s contribution coming into effect from August 1.

Meanwhile Labour’s spokeswoman on Communications, Energy and Natural Resources, Liz McManus, has said the ESB should be allowed retain a €123m dividend it is due to pass onto the Government. This would ensure that prices wouldn’t go up as planned on August 1, she said.

The announcement that prices are to rise by 17.5% from next month was bad news for consumers and particularly for people on low fixed incomes.

What is worse is that this is described as an interim increase and prices are likely to jump again in January.

This will also increase the level of general inflation, which adds to costs for business and industry, thus making price rises for other goods and services inevitable.

"While our dependence on imported fossil fuels has driven up the cost of electricity, there are a number of actions that the Government must take," said Deputy McManus.

She said the ESB should be allowed to retain the €123m dividend that it is due to pay to the Government this year and that this should be added to the €300m the ESB is setting aside itself to ease the impact of rising energy prices.

"The Minister for Communications, Energy and Natural Resources, Eamon Ryan, must urgently speed up the planned roll out of smart meters," added the TD.

She said this would allow consumers to effectively monitor and control electricity usage.

"It is essential," according to Deputy McManus, "that the Government now recognises fuel poverty is a major problem and that it will be worsened by this increase.

"The fuel allowance should be increased immediately as an interim measure," she said.