ESB price hike plan condemned as 'totally unacceptable'

Fine Gael's Communications, Marine and Natural Resources spokesperson Mr Simon Coveney has described that the ESB request for a price hike of 8 per cent in September as "totally unacceptable".

Mr Coveney, was responding to a proposal from the ESB to the Commission for Energy Regulation (CER) for a September price rise followed by a 4.5 per cent hike in January of next year.

"Electricity bills have risen by 37 per cent in just 3 years," Mr Coveney said this afternoon. "The number and level of these charge increases, must at this stage, be affecting Ireland's competitiveness in the business sector also."

He urged the CER "to ensure that the ESB respond to increased production costs by improving efficiencies within the company, rather than simply passing on the increases to the consumer, because the ESB, as a state company, must provide value for money to its customers."

The ESB submitted a formal price increase proposal on Thursday.

Normally it submits its price increase requests to the CER on an annual basis and consumers' bills rise in January. But an ESB spokesman told The Irish Timesyesterday evening that the proposed price increase was necessary to cover rising fuel costs due to a sharp rise in the price of oil.

The CER, the State body that will rule on the proposed price increase, said it would consider the request.

A decision will be made shortly on whether a September price increase is viable, it said. Business groups have also condemned the proposal arguing that if granted it will mean the cost of electricity has jumped 37 per cent in just three years.