The ESB has applied to the Commissioner for Energy Regulation to increase the cost of electricity to consumers by 8% in September.
This is to be followed by a further 4.5% increase in January.
A spokesman for the ESB said the September increase was necessary because of rising international fuel costs, which have seen the cost of oil increase to more than $40 a barrel. Some of the increase is accounted for by the introduction of carbon taxes.
The ESB's own fuel bill represents 50 per cent of the cost of generating electricity.
A period of consultation between the company and the Commissioner for Energy Regulation will last until the end of the month after which the Commissioner will reach a decision.
There has been strong raection to news of the application to increase prices. The Irish Farmers Association has flatly rejected the proposal.
National Industrial Committee Chairman, Tom Dunne said the price increase was "completely off-the-wall" and would drive inflation and costs in the economy through the roof.
