Press Releases
Electricity prices could be reduced by 10 per cent - O'Malley
Progressive Democrats press release
November 8, 2006
Electricity prices could be reduced by 10 per cent- O'Malley
Progressive Democrats Energy Spokesperson Fiona O'Malley says there is no argument for the State to continue to recoup the €70 million dividend from the ESB, particularly as the consumer faces higher and higher prices.
The Dun Laoghaire Deputy said electricity prices could be reduced by at least 10% in the near term if the ESB was directed by the Minister to run on a 'not for profit' basis in its monopoly areas of business i.e. 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. Is it appropriate for the consumer to be hit with enormous increases in prices while the ESB makes hundreds of millions in profit each year?" the TD stated. "The ESB, instead of returning a dividend to the State, could use funds to reduce costs to the consumer" she said.
Deputy O'Malley said the recent Deloitte Report made clear that the Irish consumer, who is also the ESB shareholder, is being cheated to the tune of €100 million per annum in the cost of electricity generation.
Deputy O'Malley said that while electricity price increases are attributable to rising fuel costs, examination of the ESB's Regulatory Accounts indicates that other factors are 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.
Meanwhile, Deputy O'Malley said the necessity to develop our own indigenous gas supply through the flow of Corrib Gas was "utterly compelling".
For further information please contact Mary Minihan in the Progressive Democrats press office on 01-6183615 or 087-1225140. Many thanks.