The Commission for Energy Regulation has indicated that it is likely to approve an 8% rise in ESB electricity prices from October.
Earlier this month, the ESB applied for an initial 8% rise in September to be followed by a further 4.5% increase in January 2005. It said the rises were needed because of higher fuel costs.
The CER is currently involved in consultations on the 8% application, and interested parties can make submissions until August 20. It will make a final decision on September 1.
The regulator also said it saw merit in an ESB proposal to introduce a fuel cost variation (FCV) mechanism which would adjust electricity prices to reflect movements in fuel costs, such as oil and coal prices. But it is proposing that up to July 2005, this will happen only if there are 'substantial' changes in these costs.
The ESB has welcomed the support of the CER for the introduction of the Fuel Cost Variation mechanism. In a statement the company said that it "ensures that the true cost of generating electricity is reflected to the consumer and helps maintain competition within the electricity market."
