With your permission, a Cheann Comhairle, I propose to take Questions Nos. 22, 23, 24 and 25 together.
The ESB are required by statute so to fix their charges that, by taking one year with another, revenue balances outgoings. In pursuance of this statutory requirement, the board sought permission to increase charges from 1st January last by 10 per cent. This application was referred to the National Prices Commission for examination and recommendation. The commission deferred a recommendation pending receipt of the Report of the ESB Investigation Committee (the Fletcher Committee).Due mainly to the delay, the ESB found it necessary on 1st April, 1972, to amend their application to one for an increase in charges of 15 per cent.
The Fletcher Committee recently reported to me and copies of their report were placed in the Oireachtas Library on 24th May. The report will be published shortly. The committee recommended an immediate increase of 10 per cent together with a price variation clause to be introduced as soon as possible which would reflect variations in a number of ESB cost elements such as fuel, payroll and capital charges. The report has also made a number of other recommendations related to the financing and operations of the ESB which are being urgently examined by the ESB and the Departments concerned.
The National Prices Commission have recommended an increase of 9 per cent on charges pending consideration and possible implementation of the recommendations of the Fletcher Committee.
The Report of the National Prices Commission for the month of May which I understand is due for publication on 1st June will explain fully the basis of the commission's recommendation.
In the circumstances, the Government approved an interim increase sufficient to bring in an additional 9 per cent in revenue, the situation to be reviewed as soon as possible in the light of the scope for cost reductions arising out of the recommendations of the Fletcher Committee. The recommendations of both the Fletcher Committee and the National Prices commission envisage alterations in the ESB's statutory obligations and the 9 per cent interim increase will not be sufficient to enable the board to balance revenue against expenditure in the current year or to meet any part of the deficit incurred to date.
The National Prices Commission have no doubt taken into account the extent to which increased charges might cause any undue hardship; the ESB have pointed out, in this connection, that the average increase per consumer should be of the order of only 5p per week. The recommendations of the Fletcher Committee cover a number of complex matters which will require very thorough consideration by the ESB and by the Government. I do not propose to ask the ESB to postpone the application of the interim increase now approved, which, in fact, is not adequate to meet the board's current level of expenditure.