Vol. 491 No. 6
60 Dr. Upton asked the Minister for Public Enterprise the discussions, if any, she has held with the ESB group of unions following the decision not to sanction an ESB price rise in 1998 as per the cost and competitiveness review agreement; if she has satisfied herself that the cost and competitiveness review agreement will continue to work in the spirit of partnership in which it was undertaken; and if she will make a statement on the matter. [12864/98]
I have not had any formal discussions with the ESB group of unions about proposed price increases. However, when I met the board of ESB on 22 April 1998 the matter was raised and I indicated that this was clearly a matter to be considered and decided by the Government. I am satisfied that the spirit of partnership embodied by the CCR is alive and well in ESB.
The previous Government, early in 1996 as part of the CCR, approved electricity price increases of an average of 2 per cent in 1996, 1.5 per cent in 1997 and 3 per cent in 1998. The first two phases have been implemented. These price increases were presented as a recommendation in the CCR Agreement. They were accepted by the Government on the basis of certain projections supplied at the time by ESB which anticipated profits of about £30 million per annum over the period 1996 to 1998. Based on actual results to date, ESB profits over the same period are expected to average over £150 million per annum.
The issue of price increases and tariff re-balancing is the subject of ongoing discussion with ESB.
