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Dáil
‹ Ceisteanna—Questions. Oral Answers. - ESB Charges.

ESB fuel variation surcharge increase

Summary

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.

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
Thomas J. V. Meaney Minister of State at the Department of Industry, Commerce and Tourism (Mr. Meaney) Fianna Fáil

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
Seán Browne An Leas-Cheann Comhairle Fianna Fáil

A question, please, Deputy.

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