ESB under fire for ‘miserly’ €7.66 cut

ELECTRICITY supply giant ESB last night came under fire for announcing a “miserly” drop of €7.66 in household bills.

Yesterday, the Government’s energy regulator said that bills for the ESB’s 1.9 million domestic customers would fall by 5.4% from November 1.

The cut will see the average two-monthly bill drop from €141.88 to €134.22 — a fall of €7.66 per bill or €46.02 annually.

Last week Bord Gáis announced its gas bills will fall by 10.6% from next month, saving householders about €100 a year.

The lower household bills are the result of falling gas prices internationally. ESB generates most of its electricity by burning gas.

Last night, the Consumers’ Association of Ireland said the ESB should have reduced prices further.

CAI chairman Michael Kilcoyne said: “A fall of €7.50 per bill is nothing considering electricity prices have risen 50% over the past three to four years.”

The price cut of 5.4% was effectively wiped out because general inflation of all consumer prices was running at 5%, he said.

The ESB price change is coming into effect on November 1 instead of New Year’s Day, as is usual, following the creation of an All-Ireland electricity market. From November, power stations in the Republic and Northern Ireland will be selling their power — via an all-Ireland wholesale market — to firms which supply homes and businesses across the island.

Despite the all-Ireland market, household customers in the Republic will still be paying more than consumers in the North.

Based on annual usage of 4,200 kilowatt-hours, average annual bills in the Republic are €805 a year from November against the current yearly bill of €693 in the North, a difference of 16.2% or €112.

Even allowing for the different VAT rates between the two jurisdictions, domestic customers in the Republic pay 83 or 12.7% more than householders in the North.

However, Government energy regulator Michael Tutty said bills could fall in future as a result of competition in the market for custom from householders.

“Suppliers like Scottish Power and Southern Electric from the UK are expressing an interest in the commercial as well as residential market.

“That will help get more competition in the market and hopefully drive down prices north and south,” said Mr Tutty.