Vol. 482 No. 6
42 Mr. Broughan asked the Minister for Public Enterprise if her attention has been drawn to a statement by the chief executive of the ESB that competition in the electricity market will give rise to higher prices for domestic consumers; her views in this regard; and if she will sanction an increase in domestic electricity prices. [18965/97]
I presume the Deputy is referring to an article in a daily newspaper in which the chief executive made some comments on ESB, competition and privatisation.
I have read the chief executive's comments as reported in this article. They are his own views which he is entitled to express.
The EU electricity Directive states that the establishment of the internal market in electricity is particularly important in order to increase efficiency in the production, transmission and distribution of electricity, while reinforcing security of supply and competitiveness of the European economy. I fully support these aims.
My Department is currently examining the electricity industry with a view to devising and implementing the most appropriate structure for the implementation of the directive in Ireland, which must take place by February 2000.
The ultimate objective must be lower prices together with the maintenance and improvement, where possible, of standards of service.
The Deputy is no doubt aware that the previous Government gave approval in 1996 for price increases of 6.5 per cent over the three year period 1996 to 1998.
The first increase, averaging 2 per cent, came into effect in April-May 1996 and the second phase, averaging 1.5 per cent, is effective from June-July of this year.
The third increase, averaging 3 per cent, is due to come into effect in the first half of 1998.
There are no other increases in domestic electricity costs planned.
