ESB may up rates for carbon credits

CONSUMERS could be hit with another 4% hike in electricity bills from January because of tighter controls on carbon dioxide emissions, which could add to business costs, Independent Energy Regulator Tom Reeves warned yesterday.

If this rise is sanctioned, it will be the fifth increase in electricity charges in as many years and will push the average domestic ESB bill up to €750 a year.

The main reason why the ESB may be forced to up its charges again in January is because, along with more than 70 other major Irish companies, it will have to obey stringent limits on carbon dioxide (CO2) emissions. This is part of Ireland's obligation under the Kyoto Treaty, aimed at cutting greenhouse gas pollution. Under the deal, all Irish companies will be allowed to produce 97% of the carbon dioxide they are currently emitting and buy any extra they need to use.