Warning of electricity price rises

Electricity prices will rise following liberalisation even though the cost of generating electricity will fall substantially over the next few years, a senior energy consultant warned yesterday.

Mr David Grimshaw, principal consultant with technology firm Logica, said price increases would be necessary to cover the cost of building new generating capacity.

He said the undersupply of generating capacity in the Republic meant new entrants and the ESB would have to invest heavily in the next few years to build capacity.

These plants would be capable of generating electricity more efficiently and cheaper but, in the short term, prices would rise, he said.