Electricity still cheap despite rises

ELECTRICITY costs for Irish consumers will remain among the cheapest in Europe, despite large increases in the average ESB bill from next month.

Latest figures from the EU statistical office, Eurostat, show Ireland has the third cheapest electricity rates of the 15 EU states.

In contrast, electricity costs for business and industrial users will stay among the highest in the EU despite growing deregulation Although, the average ESB bill for domestic users is set to increase by 13.25% next month, Irish electricity prices will still remain below the EU average.

ESB charges will also be affected by tax increases announced in the Budget which will see VAT on all energy bills rise by 1% to 13.5% in the new year.

It is thought the charges, approved by energy regulator, Tom Reeves will add over 12 to the average 90 two-monthly bill.

Overall, the EU survey of household electricity prices places Ireland third cheapest in Europe, based on average annual consumption figures of 3,500kw hours (KwH).

The average cost of electricity in Ireland is 9.94 per KwH - less than half the cost of the two most expensive countries, Denmark and Italy. Only Greece (6.30) and Finland (9.43) have cheaper electricity prices than Ireland.

The new charges plus VAT increases are set to raise average electricity costs to 10.7 per KwH. However, business organisations have expressed concern increases of between 3.5% and 8.4% for commercial users will make Irish industry less competitive.

The Eurostat survey shows prices for business customers in Ireland are one of the highest in Europe at 14.59 per KwH. Only Belgium, Luxembourg and Italy have higher electricity costs for large-scale users. Economists have predicted t the new ESB charges will add 0.2% to the rate of inflation when the increases take effect next month.

Mr Reeves says that further increases cannot be ruled out.