Mayo Fine Gael TD John O’Mahony has warned that electricity bills face a double whammy as a separate price review is due in September on top of the €156 million levy due to be imposed in October to subsidise peat and renewable energy generators.
“People are understandably furious about the news that electricity prices are due to rise in October by an average five per cent for households and €100 for small businesses on annual bills,” Dep O’Mahony said.
“Unfortunately there is even more bad news. A double whammy is on the way with Minister Ryan planning a separate review of electricity prices in September. It is anticipated that this will also lead to an increase in prices, particularly for domestic users. Both hikes hitting around the same time are likely to see household bills go up by 10 per cent in a month.
“Responsibility for these price hike lies firmly with the Minister, Eamon Ryan. The Regulator’s only role is to calculate the levy, based on his policies. What we’re seeing here is the impact on consumers and businesses of radical Green Party politics. Oil and gas prices have gone down, which should mean cheaper electricity, but it’s actually costing more because of their policy.
“The question is: can this price increase be justified, given the high cost of electricity in Ireland and the high profits and high cost base of the ESB and Bord Gais? Ireland already has the third highest electricity prices in the Eurozone and now they will rise even further. Minister Ryan must introduce a statutory levy to postpone the introduction of the PSO levy, pending a full review, and he should also come clean on his plans for the September review of electricity prices,” concluded Deputy O’Mahony.
According to Age Action, the charity that promotes positive ageing and better policies and services for older people, the new electricity levy to be introduced in October, coupled with the imposition of the Carbon Tax on domestic fuel, will force many older people into fuel poverty,
“We in Ireland have an annual increase in winter deaths of approximately 2,000, while 10 per cent of older people are at risk of poverty,” said Age Action spokesperson Gerard Scully. “Because of increased levels of physical dependency many older people spend more time in their homes. Older people, because they are more fuel dependent than other groups in society, spend a high proportion of their income on fuel and energy so any increase in either domestic heating fuel or electricity will mean those older people surviving on State pensions will find it increasingly difficult to maintain themselves with any sense of security or dignity.”
Meanwhile Ballina Sinn Fein Representative Dorothy Cosgrove Canavan stated the new Electricity Levy will push families that are already under financial pressure over the edge. “The decision by the government to introduce an electricity levy at a time when families and businesses are having to deal with unprecedented hardship shows the government is out of touch with the people who they are suppose to be representing. Families who are already struggling, will be put under even further pressure, small and medium business will be pushed to breaking point with costs increasing and little or no access to credit from the banks. This government clearly has no idea when it comes to turning this economy around,” she said.
