asked the Minister for Industry and Energy if he will make a statement on the report of the National Utility Service in Britain indicating that this country has the highest electricity prices in the world; and the Government's plan to rectify this undesirable situation.
Written Answers. - Electricity Prices.
373.
I have been informed by the ESB that the board disagree with the conclusions referred to in the National Utility Service survey.
According to the board a simple comparison of price statistics does not show the full picture. Factors which must be taken into consideration in making any comparison are— 1 The cheaper primary energy sources available in most of the countries reviewed. 2 The benefits of scale accruing to heavily industrialised countries through use of shift rota. 3 Benefits from interconnection with other electricity utilities. 4 Government subsidies.
A comparison undertaken on 1 September 1981 by the British Electricity Council showed that ESB prices were among the lowest in Europe to domestic consumers, were reasonably priced for light industrial users and were high for 20 to 30 energy intensive users. The National Utility Service refers only to this latter type of user.
Furthermore, while the survey comments specifically that the price of electricity in Ireland is higher than the average inflation rate, it does not highlight the fact that eight other countries also have prices for electricity at rates higher than inflation.
Recently, the Government decided to reduce the night rate for electricity by 0.5p per unit. This measure should be of considerable benefit to industry. Also the recent relatively low increase of 5 per cent in the ESB rates of charge will help to improve further the overall comparison between ESB rates and those in other countries. In the longer term one of my major policy objectives is to see that any necessary increases in ESB charges will be kept to single percentage figures. I believe that I have the full support of the ESB board and senior executives in this. The commissioning of the major coal fired station now under construction at Moneypoint, County Clare, will also help to contain prices below the rate of inflation as will the continued use of natural gas by the board.
I have decided that an inquiry should be undertaken into the reasons for the present level of electricity prices. Proposals for this inquiry are being drafted in my Department at present.