asked the Minister for Energy if he intends to bring forward proposals to the Government to reduce ESB prices in line with the recent and continuing fall in oil prices; and if he will make a statement on the matter.
18.
Ceisteanna—Questions. Oral Answers. - ESB Prices.
11.
asked the Minister for Energy if he will review the Government pricing policy for electricity in the light of falling oil prices; and if he will make a statement on the matter.
A Cheann Comhairle, I propose to take Questions Nos. 11 and 18 together.
Arising out of consultations which have been taking place with the ESB, I am pleased to be able to announce that electricity prices are being reduced.
With effect from 1 April, industrial consumers will pay on average 6.2 per cent less and commercial consumers 3.9 per cent less. There is also a ½p per kW hour reduction on the night domestic rate.
The general domestic tariff will be reduced by 5 per cent from September, at the time when domestic consumption will be increasing into the winter.
I would like to remind the House that including the reduction which was announced in June 1985 the industrial electricity costs are being reduced very significantly while the domestic reduction in September more than cancels out the last increase in the domestic tariff. This package is costing the ESB over £30 million in the financial year 1986-87.
I welcome this news although it is strange that only four weeks ago the Minister ruled out the possibility of electricity prices coming down because of falling oil prices. He said that a 2.9 per cent increase was the smallest for quite a long time. Is this the only decrease envisaged for 1986 or does he intend to review prices again in three months' time because of falling oil prices?
When the Deputy asked me that question on the last occasion, I was not in a position to indicate positively that there would be a decrease in prices. Therefore, I sounded a cautious note which was the correct thing to do. It is my intention and that of the ESB to review prices throughout the year but much will depend on fluctuations in oil prices.