Dáil Éireann díospóireacht -
Thursday, 25 Jul 1996

Vol. 468 No. 4

Written Answers. - Domestic Electricity Price Rises.

Seamus Brennan

Ceist:

929 Mr. S. Brennan asked the Minister for Transport, Energy and Communications the anticipated electricity price rises in the coming years for domestic consumers following the latest EU deal and following the comments made by the Chief Executive of the ESB at the company's results presentation. [15643/96]

Minister for Transport, Energy and Communications (Mr. Lowry)

The Government earlier this year approved electricity price increases for the next three years. These increases are necessary to enable the ESB to undertake substantial investment, of the order of £1.5 billion over the next five years, in the electricity infrastructure, particularly in up-grading the rural network.

While the overall average price increase will be 2 per cent in 1996, 1.5 per cent in 1997 and 3 per cent in 1998, domestic bills will increase by 2.8 per cent in 1996, and 2 per cent in 1997. The 1996 increase, now being implemented, will add 17 per cent per week to the average domestic electricity bill. The allocation of the increase in 1998 among the various categories, including domestic customers, will be determined in due course.

The fact that there has been no increase in electricity prices for over ten years has also left domestic prices among the lowest in Europe. Moreover, the implementation of the approved increases for 1997 and 1998 is contingent on satisfactory implementation of the CCR. As the projected savings from the CCR come through, they will help to contain electricity prices against inflationary tendencies. The implementation of the CCR is being monitored on an ongoing basis by my Department and ESB's external auditors have also been requested to sign off on the savings.

The interest of European consumers is one of the major factors underlying the EU sponsored proposals for the liberalisation of the electricity market in Europe. It is too early to predict the extent of the benefits the new electricity Directive is expected to bring to consumers.