As I have stated previously in the House, the ESB has applied for an increase in electricity prices primarily to finance its proposed capital expenditure programme.
The Culliton and Moriarty reports and the recently published Programme for Competitiveness and Work all emphasise the necessity of minimising energy costs as a vital element in maintaining a competitive edge for Irish businesses. If our energy costs escalate, economic growth could be adversely affected. This is the policy framework within which the need for an electricity price increase is being assessed.
The Government has decided that the ESB's cost base and capital expenditure programme must be examined in detail before taking a decision on the price increase application. The review of the ESB will concentrate on how ESB costs compare with international best practice and will establish international benchmarks against which future ESB costs and performance can be monitored.
No decision will be taken about an electricity price increase until I am satisfied that all opportunities have been exhausted to maintain the existing price levels through greater efficiency.