Dáil Éireann Debate, Thursday - 21 October 2004
81 Ms Burton asked the Minister for Communications, Marine and Natural Resources if he will list the occasions on which increases in ESB charges have been sanctioned since June 1997 and the amount of the increase sanctioned in each case; if his attention has been drawn to the concerns expressed by business interests and consumer groups at the implications of the substantial increase in ESB charges; and if he will make a statement on the matter. [25637/04]
View answerI do not have a function in the pricing of electricity since the Commission for Energy Regulation, CER, was given the responsibility for regulating ESB's tariffs to its franchise customers under the European Communities (Internal Market in Electricity) Regulations 2000.
Prior to that, ESB would, by custom and practice, seek Government approval before increasing its tariffs. In 1996 the Government, as part of the ESB's cost and competitiveness review, CCR, approved electricity price increases of an average of 2% in 1996, 1.5% in 1997 and 3% in 1998. The first increase came into effect from April-May 1996 and the second increase came into effect from June-July 1997. In May 1998, the Government decided that there was no justification for the 3% price increase in the light of the very strong financial performance of ESB which significantly exceeded the projections of profitability made in 1996 when the CCR was agreed.
Although responsibility for electricity price increases rests with the CER, I am aware of the concerns of business interests and consumer groups. My predecessor, Deputy Dermot Ahern, raised this issue with the chairman of ESB in late July this year. In his response, the chairman confirmed that the board of ESB is acutely conscious of the need to continually focus on controllable costs in an effort to mitigate the necessity for price increases.
