asked the Minister for Energy if he will set out the Government's policy on the price of electricity; if any measures are planned to reduce the price of electricity; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Price of Electricity.
17.
It is Government policy to ensure that any possibilities for reducing electricity prices are availed of and in this context my Department keep ESB costs under continuous review.
The Deputy is no doubt aware of the most recent 5 per cent reduction in electricity prices announced in the budget speech of 27 January.
I am sure the Minister will agree that while there was a drop in electricity prices that was made up for in the budget by the placing of 5 per cent VAT on electricity. Does the Minister agree that the taking of £31 million from the ESB by requesting them to pay off the balance of debt immediately is further adding to the costs of the ESB and thereby preventing a further drop in the price of electricity?
I do not accept that at all. In reply to the first point, there will be a net reduction of 5 per cent to most industrial and commercial customers as they can reclaim their VAT payments. As far as the second point is concerned, the £31 million would have to be repaid to the State anyway.
Over ten years.
It is only a question of replacing one set of borrowing with another. It does not affect the prices.
Has the Minister brought forward proposals to Government to remove the £20 million excess hydrocarbon tax the ESB must pay into the Exchequer and the excess rates bill the ESB must pay currently in order to remove a very substantial £20 million handicap?
Surely the Deputy is extending the scope of this question out of all proportion.
These are measures that the Government can do something about.
Hopefully we can deal with this in a Second Stage debate later on.
(Interruptions.)