Average ESB bill to top €100 as prices rise 5%
The increase, sanctioned by the Commission for Energy Regulation (CER), will come into effect in the New Year. The average two-monthly domestic bill will increase from €96 to €100.80.
It also emerged yesterday that because of a huge increase in demand in recent years, the possibility of power cuts during the winter months has not been ruled out.
There have been 300,000 new connections in the past five years and generation is growing at a rate of 4% each year.
ESB sources confirmed its energy supply is at near capacity levels, despite the coming on-stream of independent generation stations like Energia's Huntstown station in North Dublin. The ESB has responded by procuring extra capacity from the Ballylumford power station in Northern Ireland, as well as installing two temporary mobile generators over the winter months when demand is highest.
However, sources conceded if there was a particularly cold spell in the winter, or if a generator broke down, power cuts would ensue.
According to regulator Tom Reeves, the hike for small and medium businesses will average 4%, while industrial users face a 6% rise. To increase capacity, Mr Reeves has sought offers from private companies to build a new power station. The ESB is not permitted to tender for the contract.
Opposition reaction to the increase was damning. Labour Party spokesman on energy Tommy Broughan described the increase as a "further stealth tax on Irish households, at a time when the ESB records profits of €250 million".
He said the rise was necessary only because the Government had "creamed" a large dividend from the State electricity service.
Fine Gael's Simon Coveney said the hike would "spark outrage". He questioned the need it, given the profits made by the ESB last year and said the Government needed to adopt a more aggressive approach towards deregulating the market.
Gary Ryan, of Energia, which supplies energy in the deregulated industrial market, responded by saying tariff increases are "always unwelcome".
He said the factors behind the increase network investment, State levies and providing extra capacity were not open to competition and left independent energy supply companies with no choice but to pass the increases on to customers.
