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Electricity Price Rises Are Unwarranted

By August 25, 2015No Comments

I am very disappointed to learn today about a minimum 5% rise in the price of electricity bills over the next four years after the regulator is set to proposed increased spending by the ESB and Eirgrid of 2 billion Euro in the period 2016 to 2020. This news raises a number of questions with regard to alternative energy sources and competitiveness. We were told that the increase in wind energy would lead to lower electricity costs but this has not happened. We have already the 3rd highest electricity costs in Europe and now businesses are faced with a 5% hike which will make them even more uncompetitive in the marketplace. We are well below capacity at the moment so I would question the need for these spending increases. The Jacobs report out this week also says that Eirgrid staff costs had gone up by 16 million Euro in five years to 134 million Euro and the report says that these increases “may have been incurred ineffeciently” to quote the report directly. The minister needs to make a statement on this matter because these are two semi-state companies and are using taxpayers money. A rise in the price of electricity is not warranted at this stage and we have to do everything we can to ensure that our industry is able to compete with the lowest costs possible.