Ceisteanna—Questions. Oral Answers. - ESB Charges.
- ESB fuel variation surcharge increase 6 speeches
The Minister said the surcharge increase, approved on the National Prices Commission’s recommendation, raised average electricity prices by 20.5 per cent because of rising fuel costs. Keating challenged the scale of the increase; the Minister cited the surcharge’s role in covering the ESB’s costs.
Michael Keating, Thomas J. V. Meaney, Seán Browne
- ESB accounting procedures and electricity costs 18 speeches
O’Toole asked whether reviewing the ESB’s accounting procedures could reduce costs and electricity prices. The Minister said procedures were considered and reviewed by the Prices Commission, while the Chair ruled that the issue went beyond the question before the House; the exchange then became contentious.
Patrick O'Toole, Thomas J. V. Meaney, Seán Browne
- Oil’s contribution to electricity price increases 12 speeches
After procedural interruptions, Harte asked what share of electricity increases was directly due to higher oil-import costs. The Minister said he could not assess oil’s contribution to the overall electricity price or its increase.
Patrick D. Harte, Thomas J. Fitzpatrick, Seán Browne, Thomas J. V. Meaney
asked the Minister for Industry, Commerce and Tourism if he will make a statement on the dramatic increase in the fuel variation element in ESB charges, as reflected in accounts recently issued; if any price control exists in relation to any aspect of these accounts; and, if not, if he has any proposals for such controls.
Comment on this
Following a recommendation by the National Prices Commission, the Government approved an increase in the fuel cost variation surcharge on ESB bills with effect from the February/March 1980 billing period. The increase in the surcharge resulted in an increase of 20.5 per cent on average on electricity prices. The increase in the surcharge was a result of the continued increase in oil prices in the latter half of 1979 and also in other fuel costs. During 1979 oil prices to the ESB doubled.
I would like to assure the Deputy that all increases in ESB charges, both in basic tariffs and in the fuel surcharge, are subject to very detailed examination before being allowed. Applications to increase charges are firstly examined thoroughly by the National Prices Commission. Their recommendation is considered by the Government, who take the final decision on any increase in electricity charges.
Comment on this
Does the Minister consider it satisfactory that he can get up and announce a price increase in the fuel variation surcharge of over 25 per cent in one period of a few months? Surely that is not adequate and some effort must be made in accordance with the promises made in the manifesto.
Comment on this
I am asking the Minister if an effort must not be made to do something about that. It is not good enough to come in here and talk about a 25 per cent increase.
Comment on this
It is a 20.5 per cent increase. I would refer the Deputy back to July 1979 when the National Prices Commission were considering a proposal by the ESB to reactivate the FCV surcharge. The ESB incurred fuel cost inflation in 1979 and sought the reintroduction of this surcharge as the most appropriate means of achieving a break even position for the accounting year to 31 March 1980. The commission made recommendations that the ESB be allowed to reactivate the FCV surcharge and that the surcharge be reviewed at four monthly intervals. The point facing the ESB and the taxpayer was whether the board would be allowed to achieve a break even position for the accounting year ending at 31 March 1980. If Deputy Keating wants it otherwise he will have to go back and get tax from the taxpayer to pay for the subsidy.
Comment on this
If the accounting procedures in the ESB were looked at by the Government it might have the effect of reducing prices. Will the Minister comment on that?
Comment on this
I am just asking if the Minister or his Department have looked at the possibility of examining the accounting procedures with a view to reducing costs.
Comment on this
The question deals with the fuel variation. The Deputy would have to put down a separate question.
Comment on this
The Minister replied covering a broad area concerning fuel charges or ESB charges. I am asking if any scrutiny of accounting procedures might lead to a reduction in cost.
Comment on this
Accounting procedures are always taken into consideration and they are always reviewed by the Prices Commission. I am sorry the Deputy does not understand how the Prices Commission works.
Comment on this
The fact that Question No. 34 was changed to written reply shows how well the Prices Commission are working.
Comment on this
I am not castigating the National Prices Commission in any way. They are doing a fine job.
Comment on this
I am trying to jog the Minister's memory. Will the accounting procedures of the ESB, when examined and brought up to date with a view to reducing the price of electricity, effect a reduction? This is from the Fianna Fáil manifesto.
Comment on this
The Minister should not mention licking wounds with a 20.2 per cent inflation rate this morning, 7.4 per cent in the last three months.
Comment on this
I am entitled to ask a supplementary. It is very bad manners for the Minister to continue talking.
Comment on this
(Cavan-Monaghan): On a point of order, it is the Chair's business to get order and he will not create order by advising the Minister to join in this ruaille buaille by asking the Minister to answer a question during the disorder.
Comment on this
I was about to ask the Minister what percentage of the electricity increases is directly due to the oil imports?
Comment on this
I have no way of assessing the cost of electricity in relation to the overall price of oil or in relation to the increased price of oil.