Vol. 530 No. 3
30 Mr. Higgins (Mayo) asked the Minister for Public Enterprise if her attention has been drawn to the ESB's intention to seek an increase in the price of electricity to consumers; and if she will make a statement on the matter. [3825/01]
I no longer have a function in relation to electricity prices. Decisions about increases in the price of electricity are now a matter for the Commission for Electricity Regulation in accordance with Regulation No. 31 of the European Communities (Internal Market in Electricity) Regulations, 2000, which came into effect on 20 December, 2000.
(Mayo): In the light of widespread speculation in newspapers, especially in the business sections, that the ESB is in the process of making an application to the regulator, Mr. Tom Reeves, for an increase in electricity prices, does the Minister have information on how the ESB's fuel costs increased last year? Will she indicate how much fuel costs account for the ESB's total operating costs? Both these aspects are central to the ESB's defence of its position in seeking an increase in electricity charges.
I do not have the precise figures sought by the Deputy but I will arrange for them to be sent to him. The profits in 1998 were £196 million and £216 million in 1999. Increases in fuel prices, especially during 2000, are expected to reduce the profits for 2000. Nevertheless, I hope the company's profits will continue to be substantial because it has major structural works to undertake. The fuel aspect is significant, as it would be in CIE or any other company.
(Mayo): The company made a profit of £198 million in 1998 and £216 million in 1999. Given that fuel prices are falling and are likely to fall further and acknowledging the company's £2.1 billion infrastructural programme, would the Minister agree it might be worth ascertaining from the ESB its intentions regarding the level of price increase it is seeking and what effect it will have on the consumer? While I accept any decision is in the hands of the regulator, this would be worthwhile, not only from the point of view of the consumer but in terms of the consumer price index.
I have asked an official in my Department to assess the impact of a price increase on the CPI because we are all aware that any price increases rebound on it. The regulator is charged with considering and deciding on the application for price increases and it would be wrong for me to intervene. I have requested the information sought by the Deputy.
