All-island market unlikely to cut prices

ENERGY industry watchdogs must stop putting the needs of power companies ahead of hard-pressed customers, an Oireachtas Committee was told yesterday.

The call from consumer champions came as regulators warned a new system uniting the Republic’s electricity market with the North’s next year would not necessarily bring cheaper prices.

The Communications, Marine and Natural Resources Committee expressed concern at price hikes forced on customers in recent years.

Consumers Association of Ireland chief executive Dermott Jewell told the committee: “The regulatory system only seems to work to the benefit of the providers.”

He said his organisation had never been consulted by industry watchdogs before they sanctioned price rises.

Earlier, Commissioner of Energy Regulation Regina Finn said she could not guarantee a cut in prices when the all-island system came into being next year.

Pressed by committee chairman Noel O’Flynn TD, Ms Finn said prices from July 2007 would be lower than if the Republic and North stayed separate, but she was not able to predict they would be less than current rates.

Labour TD Tommy Broughan hit out at the wave of price hikes in recent years.

“These increases have really hit people on low incomes and benefits in the past few years.

“People are finding it increasingly difficult to pay and are getting more and more upset about this.

“A lot of old people won’t turn on the heat because it is now so expensive,” he said.

Mr Jewell said customers had expected an all-island electricity market would have cut prices and will be bitterly disappointed that this is now unlikely to happen.

“It’s the customer that gets let down - yet again,” he said.