Householders are facing a 13% rise in the price of electricity after the Energy Regulator, Tom Reeves, announced new tariffs on Friday.
Prices for business will also go up by between 3.5% and 8.5%. It is the second price hike in a year. Last October prices went up by an average of 9% with the bulk of increases then being borne by industrial users.
Irish householders used to enjoy some of the cheapest electricity in Europe. But from next January charges to householders will rise by 13.25%. That works out at an extra €12 euro on the average domestic bill of €90.
Energy Regulator Tom Reeves says that for many years household electricity prices did not reflect the true cost of supply because those charges were subsidised by business. These new tariffs are more cost reflective, the Regulator says, and brings electricity prices here in line with the European average.
Businesses also faces a price rise after the new tariffs. Small shops, offices and large businesses will pay between 3.5% and 4.2%. Small to medium businesses see an increase of 8.42%.
The ESB says despite the price rise, household electricity prices here will still be 9% cheaper than those in Northern Ireland.
It says the price decision takes account of the massive €2.5 billion investment taking place in electricity infrastructure and the high prices of fuel to generate power.
Electricity prices for domestic customers are included in the Consumer Price Index, but they represent less than 2% of the average household spend. The Central Statistics Office estimates that the latest price hikes will increase the rate of inflation by 0.2%.
* The employers' body, IBEC, has protested at the latest ESB price rise, saying it could place some companies under pressure. IBEC said businesses had absorbed rises of up to 19% last year and some now faced a further rise of almost 9%.
* The small and medium business body, ISME, has appealed to the Minister for Communications and Natural Resources, Dermot Ahern, to review the price rise approved for the ESB. ISME chief executive Mark Fielding said the price rise was unwarranted and would undermine the competitiveness of many businesses at a time when costs were already running out of control.
