A 3 per cent increase in electricity prices due this year under the terms of the ESB's Cost and Competitiveness Review (CCR), is likely to be refused by the Minister for Public Enterprise, Mrs O'Rourke, according to sources.
It is understood that the Minister feels the increase cannot be justified, given the level of profits now being made by the ESB.
Prices were to have increased by an average of 3 per cent early this year. A rebalancing of tariffs between domestic and industrial consumers, would have seen domestic prices increase by as much as 5 per cent. The Government was unhappy about the contribution the proposed price increase would make to inflationary pressures.
Under the terms of the CCR, agreed in 1996, the company was to increase prices by 2 per cent in 1996, 1.5 per cent in 1997, and 3 per cent in early 1998.
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