asked the Minister for Transport and Power if he will state in respect of the past three years the price increases made by the ESB; and when each increase became effective.
Ceisteanna—Questions. Oral Answers. - ESB Charges.
30.
Electricity charges have been increased by the ESB over the past three years as follows:— (a) an average of 8 per cent with effect from November, 1968; (b) an average of 7 per cent with effect from January, 1970; (c) an average of 6 per cent with effect from February, 1971.
Will the Minister say if in relation to the current increase any proposition came before the Government for the setting up of a prices advisory body, even through an application from the ESB?
I answered this question in some detail last week. We had a prices advisory body investigation into the affairs of the ESB some years ago and it found that the ESB were a totally efficient organisation. We are now proposing an independent investigation into the ESB.
Would it be possible to get some idea of the kind of independent investigation this will be?
The Deputy, the House and the public will hear about it in due course.
Will it be held under present prices legislation?
This is a matter for the Government to decide.
The Minister has heard that the ESB have said there will be another increase this year?
Not this year. I said last week that this depends on the question of the re-negotiation of oil contracts which will terminate this year. These have to be negotiated for coming years and everything depends on that.
Would the Minister consider recommending some form of graded charges having regard to the valuation of houses?
That is an entirely separate matter.
31.
asked the Minister for Transport and Power why the increases in ESB charges which were necessary a considerable time ago were not then applied.
Before considering the board's proposals for increased charges, I considered it necessary to have as clear information as possible on the out-turn for the board's profit and loss account for the year ended 31st March, 1971. The months January to March cover the board's most critical revenue period and final information on revenue in this period did not become available until billings for the March-April accounting period were prepared last month.
Is it not also another reason why the Government want to keep their options open on a general election during the summer period and that they do not want any increase in prices now?
The Deputy comes in here occasionally with fatuous irrelevancies.
Better than to come in here always with fatuous irrelevancies.
Is "fatuous irrelevancy" another name for a general election?
32.
asked the Minister for Transport and Power whether he is in a position to advise the public authoritatively on what further increases they may expect in ESB charges over the next year.
I would refer the Deputy to the ESB press announcement of 21st June, 1971, concerning electricity tariff increases which stated that while it was envisaged that a further increase in tariffs would be necessary within 12 months, the extent of any such increase would depend on the trend of costs, especially fuel costs, during the intervening period and on the degree of success attending the efforts being made at national level to control wage and salary inflation.
I am not, therefore, in a position at this juncture to forecast what further increase in charges may be necessary over the next year.
There has been an indication by the board that a further increase may prove to be necessary. In such a situation will the Minister be in consultation with the board before such proposal becomes a fact?
Indeed the Minister and the Government take a very close interest in this whole matter. I said in my reply last week that were it not for a Government decision this increase would have been substantially higher but the ESB were limited to 7 per cent to cover their deficit.
Does this mean that this increase would have been more but for Government intervention? Does it mean that in the Minister's recent talks with the board the Minister gave tacit approval to an increase later this year?
Not later this year. Within the next 12 months. The increase will depend on the matters I mentioned in reply to the question. It will depend also on the whole wage-salary situation and the re-negotiation of oil contracts.
Will the Minister say what increase was sought by the ESB before the Government intervened —was it 10 per cent or 15 per cent?
If the Deputy puts down a question——
Can the Minister say was it justified by the profit and loss account?
It was. The ESB had a deficit of 2½ million and that was covered by a 7 per cent increase all round. There were variations, of course, but the average of 7 per cent covered the deficit. There is a statutory obligation on the ESB to discharge this.
On what basis were they seeking the higher increase?
If the Deputy puts down a question I will answer it.
Will the Minister say if he has given carte blanche to the ESB?
I want to emphasise that this is dependent on a matter entirely outside our control. The question of oil supplies, which form a 50 per cent part of the ESB supply situation, will be re-negotiated before the end of this year. These negotiations will be coming up shortly and I would ask the House not to jeopardise those negotiations in any way.
Have the Government given an agreement in principle for a further increase in the ESB charges?
No.
As a result of discussions last week?
No.
Does the Minister deny emphatically that any such agreement has been reached?
I am not going to subject myself to this sort of business of denying emphatically this or that.