TDs have slated a 5 per cent increase in electricity prices due to take effect next month.
Members of the Oireachtas Committee on Economic Regulatory Affairs were particularly critical of the energy regulator for its role in sanctioning the increase in energy prices for domestic consumers.
However, the Commission for Energy Regulation, whose representatives appeared before the committee today, said the 4.9 per cent increase from October 1st was entirely due to a levy introduced by the Government to secure the country’s security of energy supply and develop the renewable energy sector.
Commission chairman Michael Tutty said the public service obligation (PSO) levy was the result of Government legislation and contacts with the energy industry and it had “no control” over the charge.
Earlier, Wicklow TD Joe Behan said the vast majority of people were appalled at the increase. “There is widespread and deeply held anger among householders and business people, who cannot understand that an organ of state can conspire to increase charges when we are living through the worst recession in living memory.”
Mr Behan said consumers were caught in a catch 22 situation; when energy prices rose, they paid more, but when energy prices fell, the PSO levy went up.
He called on the regulator to postpone the increase.
His comments came as the commission formally approved the proposal by ESB Customer Supply to keep charges at their current level. This means that that tariffs will rise by €2.73 per customer per month, the amount of the levy to be imposed from October 1st.
The levy is being introduced to cover the cost of buying electricity from less efficient peat-fuelled stations and to develop renewable and sustainable sources of electricity.
The commission says it will monitor current tariffs on a quarterly basis to ensure they are reflective of underlying energy costs. If these costs change, the tariffs might have to change, it warned.
Committee members also criticised the rising number of disconnections of electricity – more than 10,600 so far this year. Fine Gael TD Fergus O’Dowd said there was no excuse for cutting people off if the correct procedures were in place and pay-as-you-go meters were installed as an alternative.
Mr Tutty replied that the commission could not force energy suppliers to install pay-as-you-go meters, or consumers to use them.
He said disconnection was used as a last resort where bills hadn’t been paid, and was never used in the case of elderly customers or customers on life-support equipment.