RTÉ News has learned the energy regulator is considering a gas price increase of between 35% and 40%. The announcement follows a 17.5% interim increase in electricity prices which will take effect from August 1.
The ESB secured its increase in response to continuing volatility in the international energy market. The 17.5% rise will cover the period until next January. After that, prices are likely to rise again. The regulator said the increase was regrettable but inevitable.
RTÉ News has learned that gas prices could increase by more than 35%, again a reflection of market instability. The regulator is considering splitting the price increase - with the first rise taking effect from September 1, and a second hike in the New Year. The regulator's office will say only that discussions on gas prices are ongoing and have yet to be finalised.
In the past year the fuels which are used for generating electricity have soared. Oil has almost doubled in price and gas and coal are up even more.
The ESB has given the regulator €300m to help cover the costs of the network for all operators from October, but this sum will not apply to the August increase. The effect may not be seen on consumers' bills until the New Year.
The director of the Small Firms Association, Patricia Callan, said the rises were 'completely unacceptable' to the small business community. 'Three weeks' notice that a major input cost is going to increase by such a large amount is ridiculous,' she said.
Small business group ISME said it was in 'shock and awe' at the latest price increase. ISME's Mark Fielding claimed the Commission for Energy Regulation did not have the technical expertise to evaluate the need for energy price hike and asked the Energy Minister Éamon Ryan to review the situation.
