TD seeks cut in electricity prices

A PD backbencher claimed last night that the Government could force the ESB to reduce electricity prices by at least 10 per cent.

This could happen, Fiona O'Malley said, if the Minister for Communications, Marine and Natural Resources, Noel Dempsey, directed the company to run on a "not for profit" basis in its monopoly areas of transmission and distribution.

"It appears that ESB management are behaving in a nakedly profit-seeking manner in preparation for privatisation, when, in fact, privatisation is not likely in the short term."

Ms O'Malley, who represents Dún Laoghaire, said while electricity price increases were attributable to rising fuel costs, examination of the ESB's regulatory accounts indicated that other factors were, in fact, just as significant.

"These include inefficient operation of generation plant, coupled with extraordinarily high labour costs. The average salary at Poolbeg is some €122,000 per annum before overtime. There is also the €320 million increase in ESB's operating and maintenance costs over three years."

She was speaking during a resumed debate on a Fine Gael Private Member's motion calling for Government action to curb gas and electricity prices.

Fine Gael spokesman Phil Hogan said: "Not taking into account the latest increases, there have been increases since 2003 of 50 per cent in gas, 30 per cent in electricity and 40 per cent in diesel oil."