Electricity charges – ESB jumps on oil price bandwagon

Jumping on the bandwagon of the recent increase in the price of oil and coal is the most apt way of describing the grasping price hike proposed by the ESB yesterday.

It is rather perplexing that the company initially intended to seek a “modest” increase, which they now hope will be catapulted into the realm of a double-digit burden on consumers because of the global increase in oil prices.

It can only do so with the approval of the Commission for Energy Regulation, which will be sensible to the fact that the ESB is a profitable company, having reported after-tax profits of €249 million for last year, an increase of more than 56% on 2002.

The chairman of the ESB, Tadhg O’Donoghue, has blamed the company’s re vamped approach to electricity charges on the oil prices, which is really something of an unknown quantity.

Motorists are already feeling the impact of the international factors at the pumps and householders are now bracing for another erosion of their budgets.

Consumers, who have already borne several ESB increases in recent years, can only echo the sentiments expressed by the Minister for Communications, Marine and Natural Resources Dermot Ahern.

He said the increase in the price of oil was only a short-term issue and the ESB should take a more long-term view.

It would be better that such a profitable company as the ESB did not look for this price rise but instead addressed efficiencies within its own organisation.

Presumably, customers will be given the benefit when the international oil prices are eventually adjusted downward.