Reducing Electricity Charges
The Minister said industrial prices were high relative to Europe, while domestic prices compared reasonably well, and the ESB was examining the Jacobsen report’s recommendations. He expected a clearer indication of medium-term plans for further price reductions by the middle of the following year.
asked the Minister for Energy the proposals, if any, he has for reducing the high cost of electricity to industrial and domestic consumers.
Comment on this
As the Deputy will be aware the report of the Inquiry into Electricity Prices found that, while Irish electricity prices for industry are higher than those prevailing generally in Europe, domestic prices compare reasonably well with European prices.
The recommendations of the Jacobsen report are being examined by the ESB, but it will be appreciated that any sustained reduction in the cost of electricity would have to be part of a medium to longer term planning process. This process has been under way now for some time and since 1982 the ESB have been successful in keeping their tariff increases for all consumers below the rate of inflation. There has, therefore, been a real reduction in electricity costs for all consumers.
On 31 January 1985, I announced in the Dáil a reduction in the electricity prices charged to industry, ranging from 2 per cent for the smaller to 6 per cent for the larger users in the ESB's maximum demand customer category.
As I stated in the Dáil on 31 October this year, I am generally in favour of improving the relative cost of electricity to industry. I will take advantage of any opportunity which arises for further alleviation of electricity prices and will keep in mind the case being urged in respect of the cost to industrial users.
Comment on this
When does the Minister expect any action to be taken on the report of the inquiry into electricity prices? I am glad the Minister is continuing the good standard set by me in 1982 when electricity prices were kept at 5 per cent. Does the Minister intend to be able to bring prices down more, or has the Minister a clear planned programme in the ESB to try to get some sanity back into the energy costs for industry?
Comment on this
On the other hand, I accept the compliment. I would say that by the middle of next year we will have a very clear indication of the ESB's medium term planning in relation to a further reduction in prices.