asked the Minister for Transport and Power if he will request the ESB to make electricity available to demountable houses without the imposition of a special service charge when these houses have been assembled by the local authority.
Ceisteanna—Questions. Oral Answers. - Electricity Charges.
3.
I am informed by the ESB that terms for supply to premises have regard to the anticipated revenue and are normally calculated on the assumption that supply will be required permanently.
Some demountable houses are located on sites owned by local authorities and are connected to water and sewerage services. In calculating terms for supply to such houses, the terms applicable throughout the country to similarly situated permanent houses apply. In the case of mobile homes and demountable houses on sites with very short leases the calculations must assume that supply is required for a temporary period and a capital payment is therefore required in accordance with the board's rules for temporary supplies.
The board are empowered by their statute to fix their methods of charge and I do not propose to intervene.
4.
asked the Minister for Transport and Power whether there is any difference in the price of a unit of electricity charged to rural consumers vis-à-vis urban consumers; and, if so, how this difference is justified.
I am informed by the ESB that there is a difference in the price of a unit of electricity charged to rural and urban domestic consumers. This difference applies only to the first 75 units per two months. Units in excess of 75 are charged at the same rate to both rural and urban consumers. Assuming a rural domestic consumer uses 75 or more units in a two monthly period, he would be charged 62 pence more than his urban counterpart in respect of unit charges. The main reason for the difference in charges is to offset in part the substantial extra cost of bringing supply to rural consumers as compared with urban. Other costs such as maintenance, depreciation, interest, provisions for renewal of assets and meter reading are also significantly higher in rural areas.
Does the Minister not agree there is something basically and intrinsically wrong in maintaining a differential between different citizens for the same supply and the same service by a State company? Should not each consumer pay at the same rate regardless of whether he is a rural or an urban consumer? Is not the reason for the different cost that it is easier for the ESB to supply large built-up areas than consumers in scattered rural areas——
This is a long question.
——and that it does not mean that different citizens are more entitled to cheaper services than others?
The answer is that the supply of electricity to rural areas is already being subsidised to the tune of £4 million per annum, so the urban consumer is subsidising the rural consumer to that amount every year.
How long has this been in operation?
I am sorry, I cannot say.
Is it true to say that the urban consumer has been subsidising the rural consumer for a long period——
We cannot have an argument on this.
Would the Minister consider reviewing the scale of charges applied by the ESB when he is assessing the charges that will apply to rural areas? The Minister will be aware that the charges being quoted now are greatly in excess of the capacity of those persons to pay and that in many cases persons are unable to pay these extremely high charges.
The Deputy is indulging in a statement.
Would the Minister review the whole situation with a view to alleviating——
Such a review is at present taking place. I will be answering a question by Deputy Power later on the Fletcher Report.