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THE GOVERNMENT WILL engage with Electric Ireland about its plan to increase prices by an average of 3.4% from October.
The company said this will equate to an increase of €2.88 a month on the average residential electricity bill.
During the first Leaders’ Questions since the Dáil returned from the summer recess, Sinn Féin leader Mary Lou McDonald said the move by Electric Ireland will add further financial pressure on families.
“Sinn Féin believes that a freeze on energy prices during the current Covid-19 pandemic should be introduced,” she said.
Taoiseach Micheál Martin said the Government did not make the decision to hike electricity prices, but said:
“We will do everything we can, as we have, in a historic and unprecedented way to support people in difficulty. That is the Government’s objective as we go through an unprecedented global pandemic.”
“I fully accept that this news will come as a blow to many consumers in the light of the very significant and severe economic environment within which we are operating,” said Martin.
He said the Government will engage with Electric Ireland on the matter and its overall plans.
McDonald said there are big fears among the public that this particular hike will kick-start a deluge of price increases.
“In blunt terms, that would lead to many families finding it incredibly difficult to heat their homes or to turn on a light during a winter that falls in the middle of a global pandemic,” she said.
“Eurostat tells us that consumers in Ireland already pay some of the highest electricity prices in Europe. Members are aware that hundreds of thousands of people live in what is referred to as fuel poverty but which means they struggle or are unable to heat their homes.
“It should be noted also that the Government is planning to introduce a significant hike in the carbon tax in the upcoming budget and that this will put increased pressure on those same families,” she added.
“One cannot blame people, therefore, for thinking that, even in the grip of a public health emergency, rip-off Ireland is alive and well and that big companies will make sure they get their pound of flesh.
“People hear the words of solidarity and the slogan that we are all in this together and they see the comforting television adverts from companies telling them not to worry or stress and that their service provider has their back, but then their bills go up again,” said McDonald.
Rather than hiking prices, energy providers should be working with their customers, she said.
We used to have some of the cheapest energy prices in Ireland until the government wanted some competition (give contracts to their friends) so they jacked up the prices to lure other companies into the irish market….And it’s you and me who suffered… Politicians have been bought… Clifden is an example of what goes on behind closed doors where no minutes are taken
@a politicians promise is as good as a lie: any data to back this statement up? I don’t remember our electricity being cheaper than our peers
@a politicians promise is as good as a lie: whatever your smoking, put it down
@NJ: Ireland’s electricity prices were the lowest or close to it prior to the deregulation of the energy market. So when Ireland had an ESB monopoly prices were low. The market was deregulated in accordance with prevailing orthodoxy to provide “competition”. It didn’t work. In order to force “competition” the ESB were forced to artificially raise their prices and keep them high so that “competitors” could undercut them. That worked. Full “competition” is now a reality.
The problem is that the Irish market is tiny and insulated because we are an island. Foisting policies on an island that were designed for continent sized utilities was unwise.
But it wasn’t cronyism. Merely economic orthodoxy which believed that competition is good in all circumstances. But this isn’t always true.
@John R: or was it EU regulations that forbids monopolies?
@a politicians promise is as good as a lie: just like they did with the bins. Privatised the sector to bring in more competition now in our area of Dublin we only have one company to go to . Who are absolutely brutal who forget to collect at least one bin a month and twice in the last year have put our black bin straight in to the back of the lorry .and only for our cctv footage wanted us to pay for new bin
@NJ: there loads off baloney subcharges on your bill now one off the reasons it’s got so dear
Price increase as expected to cover the installation of the smart meters that they said were free.
Smart meters are also eliminating jobs , so it’s a win win.
@Dónal Ó Keeffe: Two seperate companies, Electric Ireland are a supplier and have nothing to do with the distribution of electricity or installation of electricity meters, this is the job of ESB Networks.
@Dónal Ó Keeffe: Time again to shop around for the cheapest supplier.
@Joe Johnson: exactly- you don’t have to use EI!
It’s not even the price of electricity that’s the problem. Its all the levys and fixed charges that swell the bills!
@John Mc Donagh: Well the greens are in power again.
PSO levy is also going to double in October which is going to be very harsh on consumers of electricity.
Didn’t the government put up carbon tax
@Jimmy Cully: not yet, read the article
That kettle is class!
@Mark: It is, I’ve got one just like it. It lights up red when the water is boiled and green when you place it back onto the stand, you can also set the temperature of the water.
@Mark: no its glass!!
@Seosamh: mother of god
@Seosamh: can it turn water into Guinness? If it can what’s the make n model skin
@Thomas Quinn: it’s great until the lime builds up and you just have a white kettle
@Mark: No, I’m a father of 3.
Electric company’s are just as greedy as the banks.
Aye aye thats it, increase the prices on needs of citizens not like we’re entering a global depression or anything, no, its fine break it x
The government needs to give these energy companies a firm clatter in the back of the head and tell the to cop the #%^* on.
Not surprising. ESB are currently trying to make savings of €60M.
@Sean Ryan: not to mention flooding cork and having to pay for the damage
Just like they did with the banks…. F off!
Yet they cant interfere with the market when it comes to banks and interest rates.
All a con
@Vladimir Macro: but if they were to dictate to the ESB what price to charge they would be interfering in the market. I dont think you understand the term
Maybe the government could reduce the tax on electricity, too.
When is my carbon tax rebate happening? I want to but one of those flying Pigs.
All my family working from home. Thank God. But the kettle, oven, lap top lighting never stops. Give us a effin break. Ffs
This is insignificant compared to the pending levy increase, with more to come on the back of a greener agenda. Unless you try and reduce your energy consumption 3% here means nothing, try and understand where you waste energy and this will help control the spend.
ESB makes a big marketing play of discounting dual fuel bills, based on lowered gas tariffs. So environmentally detrimental gas burners get a subsidy at the expense of electric homes.
And ESB is supposed to be leading us to a clean energy future.
This country is being run by complete idiots, or alternatively, they are just puppets jumping to the tune of the corporations, both semi-state & multinational.
have your say