Vol. 316 No. 9
asked the Minister for Industry, Commerce and Energy if a recommendation has been received from the National Prices Commission that an increase of 16 per cent plus a 2½ per cent fuel price variation increase should be granted to the ESB; if any decision on this recommendation has been reached and if he will make a statement on the matter.
23.
asked the Minister for Industry, Commerce and Energy if he is aware of the latest increases in electricity charges and the hardship caused to the community, the steps, if any, he intends taking to reduce this hardship, and if further increases are pending.
With the permission of the Ceann Comhairle I propose to take Questions Nos. 22 and 23 together.
I would refer the Deputies to the statement issued by the Electricity Supply Board on Monday, 22 October 1979. The 10.13 per cent increase in overall electricity prices announced by the board and effective from the October-November 1979 billing period—that is, bills issuing on or after 1 December 1979—represents a reactivation of the fuel cost variation clause and is designed solely to compensate the board for increases in the cost of fuel oil in recent months.
The increase was approved by the Government on the basis of a recommendation from the National Prices Commission. While the overall average increase approved is 10.13 per cent the increase in general domestic rates—other than for night storage heating—will be lower at 9.37 per cent. This will have the effect of increasing the average cost of electricity to domestic consumers by about 25p per week, although for some 60 per cent of domestic consumers the increase will be lower. This increase, while due to factors outside the control of the board, nevertheless highlights the board's heavy dependence on imported oil and the need for greater diversification in energy sources for electricity generation. The Government have ensured and will continue to ensure that only unavoidable increases in electricity charges are passed on to the consumer and that every effort is made by the board to offset their internal cost increases by increases in productivity and regulation of manpower levels.
I do not at this stage envisage any special measures being taken to offset increases in electricity charges to the consumer. I should like to emphasise that this latest increase in electricity charges does not in any way affect the scheme for the provision of free electricity to certain categories of old aged and disabled persons since the number of free units allowed is not dependent on unit cost. Future increases in electricity charges will be dependent to a large extent on the movement of prices in the international oil market.
The Minister stated that the average increase was something in excess of 10 per cent and that the increase on the domestic consumer was 9.3 per cent. I should like to know what increases were in excess of the average?
If the Deputy puts down a separate question about this matter I will give him the information. I regret that I do not have the detailed information in my possession now.
Would the Minister not agree that in view of the fact that she quoted one figure as being below the average she should also know what was in excess of the average? The Minister should have all the figures available. Is it possible that if this higher rate of increase is being borne by other than the domestic sector, namely by the job creating sector in the community, that such an increase will affect employment in the long run?
I told the House that only unavoidable increases in electricity charges will be passed on to the consumer or industry. It has always been the Government's intention to keep prices to a minimum.
In view of the fact that the Minister does not have the figure I requested, I would be obliged if she would send that information to me. I should like to know the basis on which it was decided to discriminate in favour of one type of consumer as against others.
That is a separate question.
Is there any truth in the suggestion that there may be further increases in ESB charges in the near future and, if so, on what basis?
No price increase application has been received from the ESB.
In the situation now prevailing with the cost of energy at an all-time high, I should like to know if the Government have any proposals to take steps to alleviate the undoubted hardship being caused?
It was not envisaged that any special measures would be taken at this stage but, naturally, that is a matter which will be kept fully under consideration. I should like to add that two other Departments are involved.
The Minister does not care how high the cost goes.
The remaining questions will appear on tomorrow's Order Paper.
