Vol. 405 No. 8
5 Tomás Mac Giolla asked the Minister for Energy if he will outline his policy on energy charges for domestic consumers; his views on the recent price increases announced by the ESB and Bord Gáis; and if he will make a statement on the matter.
Since the recently announced price increase is due to an increase in the rate of VAT, this question relates primarily to budgetary matters which are the responsibility of the Minister for Finance.
Falling costs had, exceptionally, enabled the ESB to absorb the two previous increases in VAT but because of the board's changed financial situation, a further discount of 2.5 per cent is just not possible.
My policy in relation to gas and electricity charges is that the BGE and ESB should strive for the lowest possible price achievable consistent with a satisfactory long term financial position. In particular Irish prices should be competitive within the EC.
I think that was a neat bit of sidestepping by the Minister. Was the Minister aware of the proposal by the Minister for Finance and has he spoken to either the ESB or Bord Gáis Éireann in the meantime to see if they could absorb this increase? In other words, is he satisfied that neither the ESB nor Bord Gáis Éireann can absorb the 2.5 per cent increase, particularly Bord Gáis Éireann, who are very secretive about their financial affairs? Could he say that they cannot absorb the 2.5 per cent?
The decision to increase the VAT rate in these two cases, which was announced on budget day, was a Government decision. As a member of the Government I participated in that decision. I am satisfied that neither of the two companies involved are in a position to absorb the increase.
Did the Minister have any discussions with either the ESB or Bord Gáis Éireann in regard to this increase?
My Department has been in touch with the ESB and Bord Gáis Éireann.
We must now proceed to other questions to the same Minister.
