Call for VAT reduction as ESB Electric Ireland announces price rise

The Consumers Association is calling on the Government to reduce the VAT rate on utility bills to 9%.

The call comes after ESB Electric Ireland this afternoon announced that it's increasing its electricity bills by 12% from October 1.

The semi-state is blaming international gas prices for the hike, which it says have risen by 40% in the past year.

CEO of the Consumers Association Dermot Jewell is calling on the Government to reduce the VAT rate in the same way the rate was reduced to benefit the tourism sector.