ESB accused of hiking charges by backdoor

THE ESB has been accused of hiking electricity prices by the backdoor after increasing standing charges on its most popular tariffs.

The ESB cut the unit price of electricity for householders from January by 7.7%, but hiked its yearly standing charges by as much as 5%.

Despite ESB’s claims that bills are down 5.4% on average compared with last year, householders on the nightsaver tariff have seen bills fall by as little as 3.2% while electricity costs on the popular night storage heating tariff have fallen by less than 1% a year (equal to 50c).

The Consumers’ Association of Ireland (CAI) condemned the ESB for trumpeting price cuts while hiking standing charges.

“Consumers have complained to us that they have been misled, so we want to know why the regulator agreed to this increase,” said CAI chief executive Dermott Jewell. “Clearly the savings have not filtered down to the average householder because standing charges have gone up.”

Compared with last year, householders on the standard tariff have seen annual standing charges rise by 5% to €104.40 for urban consumers and €139.20 for rural homes.

The price of each unit of electricity for customers on the standard tariff is 15.03c, which is 7.7% lower on last year, yet the rise in standing charges has restricted the savings consumers gain from falling costs.

Today ESB bills are 6.1% lower for urban householders, who pay €122.59 on average every two months, and are down 5.7% for rural dwellers, who are billed €128.39-a-time.

Yet if the standing charge had been left unchanged urban consumers could be enjoying savings of 6.8% while their rural counterparts would have seen bills fall 6.5%. This would mean an annual saving of €52.91.

Householders on nightsaver tariffs have fared even worse as bills have fallen by 3.6% in rural areas and just 3.2% across urban districts.

ESB slashed nightsaver standing charges by 9.9%, but only cut day-time electricity rates by 1.4% and night-time prices by 0.7%.

Based on an annual usage of 4,200 kilowatt-hours, the urban nightsaver customer is saving €7.83 a year in the electricity part of their bills and €13.87 in standing charges, a total of €21.70 a year.

Yesterday the ESB said the Government’s Commission for Energy Regulation set domestic electricity bills.

In its decision paper, the Commission for Energy Regulation said the 5.4% reduction was only an average for the country, and consumers could get less.

Electric shock

Typical ESB bill this year versus 2007:

Standing charge: 104.40, up 5%

Electricity (4,200kWh yearly): 631.15, down 7.7%

Total: 735.55, down 6.1%.