ESB cost increase in October

badolepuddytat

Anyone read the ESB submission on cost increases for october. I suppose we all knew it was going to go up..... but this much.


According to the document they are looking for an increase from 114Million Euro to 182million, percentage wise.......is this going to get passed on to the consumer.:eek:

thoughts?

http://www.cer.ie/GetAttachment.aspx?id=1082f0f1-fd26-4948-87a6-da264ef62efd

muffler

This might be more at home in the consumer issues forum. If not it can be moved on from there.

Nody

badolepuddytat wrote: »

According to the document they are looking for an increase from 114Million Euro to 182million, percentage wise.......is this going to get passed on to the consumer.:eek:

Of course it will be passed on to the consumers, every single increase will eventually be passed on to the consumers. Neither do I see the big surprise in the increase if you have if you have even casually followed the stock market in the last six months and the current speculation going on there.

For a even quicker answer I've added the below graph over natural gas spot prices on the NY exchange.

ongarite

Not suprising. Cost of gas has doubled since last year, most plants in Ireland are gas generated hence the cost increase to the customer.

ejmaztec

I had my first fully-automated ESB phone call yesterday, telling me that I'm supposed to pay the bill within 14 days of issue. Does that mean all of their credit controllers have all been made redundant so that the October increase won't be as bad as we think it is? I think the answer's probably "No".

dudara

Do you honestly expect to pay the same prices as now for all energy sources (ESB, gas, petrol, diesel etc) given the rocketing demand and prices?

Until alternative, stable energy sources are created and put into common use, we're going to be at the mercy of the markets when paying for energy.

ejmaztec

I think that the consumer is also paying extra for the cost of emergency r&d into alternative methods of power generation, which makes the increases worse.

badolepuddytat

I do understand that the price of gas and oil on wholesale commodities markets has increase dramatically, and that an expected increase in prices are going to be high.

I was specifically asking if anyone would be able to interpret the document for me and see if I am correct in saying that the 57% increase that they are looking for from the CER will:

a. Am I reading it wrong, and they are not asking for a 57% increase?

b. Will the increase completely come from retail revenues, or is there accounting nuances that i have missed.

B

ytpe2r5bxkn0c1

ejmaztec wrote: »

I had my first fully-automated ESB phone call yesterday, telling me that I'm supposed to pay the bill within 14 days of issue. Does that mean all of their credit controllers have all been made redundant so that the October increase won't be as bad as we think it is? I think the answer's probably "No".

I think you're missing the point behind the increase. It's the cost of FUEL. Their manpower costs are actually well below what it was 10 years ago and very mich better than other utilities abroad. The 30% increase is towards the cost of all imported fuels. There are similar increase mouted for retail Gas.

The increase in the UK is expected to be 40% so it could be worse. This is an international problem and not confined to Ireland.

ytpe2r5bxkn0c1

ejmaztec wrote: »

I think that the consumer is also paying extra for the cost of emergency r&d into alternative methods of power generation, which makes the increases worse.

Wrong! The regulator does not include R&D in it's use of system charges allowed to the ESB or to the Supply or Generation companies. You might like to read some of the CER website and get a feel for how the electricity market is broken up in Ireland.

ejmaztec

Lucy Steep Xerox wrote: »

I think you're missing the point behind the increase. It's the cost of FUEL. Their manpower costs are actually well below what it was 10 years ago and very mich better than other utilities abroad. The 30% increase is towards the cost of all imported fuels. There are similar increase mouted for retail Gas.

The increase in the UK is expected to be 40% so it could be worse. This is an international problem and not confined to Ireland.

Lucy Steep Xerox wrote: »

Wrong! The regulator does not include R&D in it's use of system charges allowed to the ESB or to the Supply or Generation companies. You might like to read some of the CER website and get a feel for how the electricity market is broken up in Ireland.

You'd be surprised what happens in the magical world of accountancy.

The_Conductor

An ESB spokesperson was interviewed about the rise they were seeking on RTE about 2 weeks back. What he said was that the regulator normally knocks perhaps 3 or 4% off what they request- so their initial request factors this into account. In actual fact they expect to be granted between 31 and 32 per cent rises.

sussed

people should look into renewable energy sources i recon, they cost a bit but in a couple of years you have it paid off and then free electricity from then on!!! you can even sell it back to the grid!!!
thats what im going to be looking into gettin n e way, the best place i found so far is [REMOVED] as they seemed to know what they were talking about when i contacted them and wer very helpful!
what do you guys recon???

MOD EDIT: I suspect you are spamming this site.

The_Conductor

The average person will not receive planning permission to undertake a development of suitable size to generate quantities of electricity for resale back to the network.

Far more feasible is installing solar panels to heat water/radiators etc, and the installation of insulation in exterior walls. A properly insulated home can in theory use vastly less energy than a regular home- and will repay the initial investment extremely quickly.

Wind turbines of a scale suitable for commercial electricity generation take between 10 and 13 years to repay the initial expense of installing them, and have an average lifespan of 18-22 years (think Nordtank etc)- which to be honest is reasonable enough.

Making sure you don't use more energy than you need to, is a far more reasonable proposition for the average person.

SEI (Sustainable Energy Ireland) do run schemes for grant-aiding the installation of energy efficient and environmentally friendly devices (www.sei.ie) might be worthwhile having a look at their website.

S.