Electricity Price increase 2013

lmimmfn

Ok, this is late but i wasnt aware of it until i read it in the Sunday Times yesterday in the Money section, the Irish Times reported it on June 28th - http://www.irishtimes.com/business/sectors/energy-and-resources/electricity-cost-to-rise-by-205m-due-to-levy-increase-1.1445502

So the increase is over 50% on the current PSO levy, i.e. going to €3.48 a month over the 12 months from October, while we currently pay €2.32. It doesnt sound like much, however VAT is also applied to this( why the hell are we paying VALUE ADDED TAX on a levy? ). Not only that why when the ESB has pre tax profits of 350million+ for 2012( http://cdn.thejournal.ie/media/2013/03/esb-ar-2012-full.pdf ) am i paying a tax for renewable energy when surely its ESB's obligation to invest in that( especially when the profits are soo high ).

I wouldnt mind but my money is being paid to private companies Tynagh Energy and Aughinish Alumina, why the hell arent the ESB profits used for this?

Every year, same old same old, ESB, Gas, Bin Charge, Health Insurance increase to bail out VHI, when is this madness going to end? my gas and electricity, bin charges and health insurance have increased on average 50% over the past 4 years, even more in some cases.

Health Insurance is of course optional, but you cannot do without electricity or gas or waste disposal. I dont know, this is becoming impossible.

woodoo

Its ridiculous. The ESB pay massive wages and make a healthy profit so why are the public asked to pay this levy.

everdead.ie

lmimmfn wrote: »

Ok, this is late but i wasnt aware of it until i read it in the Sunday Times yesterday in the Money section, the Irish Times reported it on June 28th - http://www.irishtimes.com/business/sectors/energy-and-resources/electricity-cost-to-rise-by-205m-due-to-levy-increase-1.1445502

So the increase is over 50% on the current PSO levy, i.e. going to €3.48 a month over the 12 months from October, while we currently pay €2.32. It doesnt sound like much, however VAT is also applied to this( why the hell are we paying VALUE ADDED TAX on a levy? ). Not only that why when the ESB has pre tax profits of 350million+ for 2012( http://cdn.thejournal.ie/media/2013/03/esb-ar-2012-full.pdf ) am i paying a tax for renewable energy when surely its ESB's obligation to invest in that( especially when the profits are soo high ).

I wouldnt mind but my money is being paid to private companies Tynagh Energy and Aughinish Alumina, why the hell arent the ESB profits used for this?

Every year, same old same old, ESB, Gas, Bin Charge, Health Insurance increase to bail out VHI, when is this madness going to end? my gas and electricity, bin charges and health insurance have increased on average 50% over the past 4 years, even more in some cases.

Health Insurance is of course optional, but you cannot do without electricity or gas or waste disposal. I dont know, this is becoming impossible.

The Levy goes to ESB Networks not Electric Ireland.

ESBN is responsible for the electricity infrastructure (and ESB International I think).

I am guessing the extra funds are to pa for interconnectors between here and the UK and France.

I am surprosed though they have been given such a large increase though.

As an FYI Electric Ireland made a 1m profit last year.

Icepick

What cost-cutting measures have ESB and Bord Gais introduced in the last 5 years?

skafish

Icepick wrote: »

What cost-cutting measures have ESB and Bord Gais introduced in the last 5 years?

None. And as semi state companies (likewise Coilte) they are not bound by Croke Park, or Haddington road, so no pay cuts either. In fact, AFIK, they got pay rises in 2010 and 2011:eek:

Villa05

Icepick wrote: »

What cost-cutting measures have ESB and Bord Gais introduced in the last 5 years?

I believe bord gais recently invested in e 700 office chairs for their staff, they hope this will result in fewer back injuries amongst staff

lmimmfn

everdead.ie wrote: »

The Levy goes to ESB Networks not Electric Ireland.

ESBN is responsible for the electricity infrastructure (and ESB International I think).

I am guessing the extra funds are to pa for interconnectors between here and the UK and France.

I am surprosed though they have been given such a large increase though.

As an FYI Electric Ireland made a 1m profit last year.

No, the levy is shared between ESB and private and unfloated companies( not publically available profit/loss sheets ).
My point is why the hell am i paying for this, surely the highly profitable ESB is obliged to invest in this rather than raping me as a consumer.

Heroditas

Icepick wrote: »

What cost-cutting measures have ESB and Bord Gais introduced in the last 5 years?

Quite a bit: ESB cuts

creedp

Heroditas wrote: »

Quite a bit: ESB cuts

Not bad when some of the highest paid [public sector] workers in the State can protect their core pay and in acceeding to some concessions on overtime, allowances, profit share arrangements, performance related payments, my head spins ... they unlock a further 'frozen' profit sharing payment worth up to €2,000. In addition under this wage cutting arrangement, if they exceed a performace target they could in line for further profit sharing payments. Its a bloody bonanza that's what it is. I wonder what would happen if profits fell because electricity prices were moderated by the regulator. It a great system, the regulator increses prices presumably to cover increased costs ensuring profits can be made wholsale and people who are supposedly sufferring cuts can continue to collect? I wonder are all these profit/performance related bonuses feeding into the average public sector wage?

Icepick

Heroditas wrote: »

Quite a bit: ESB cuts

You know it's bad when cosmetic changes amount to €140 over 5 years.

Idbatterim

You know it's bad when cosmetic changes amount to €140 over 5 years.

exactly what I was about to say, how much has been squandered needlessly since the recession has started, that could have been spent on health, welfare etc?...

Heroditas

They're semi-state companies. It's not as if they avail of exchequer funding like the likes of the Dept of Eduction or Dept of Social Protection.
If they make cuts, that doesn't mean the government has extra cash to throw around.

Idbatterim

of course it does, they pay the government a dividend, the lower the running costs, the higher the dividend...

http://www.irishtimes.com/business/sectors/energy-and-resources/esb-staff-try-to-halt-500m-dividend-payments-to-state-over-pension-dispute-1.1442498

hmmm

We can't have the best paid electricity workers in Europe if you're going to keep complaining about extra taxes. People voted for Labour, and another 20% will vote for SF, so this is what you get.

woodoo

Heroditas wrote: »

They're semi-state companies. It's not as if they avail of exchequer funding like the likes of the Dept of Eduction or Dept of Social Protection.
If they make cuts, that doesn't mean the government has extra cash to throw around.

The people of Ireland do though which is good for the economy.

skafish

creedp wrote: »

I wonder are all these profit/performance related bonuses feeding into the average public sector wage?

No. semi states are independent of the rest of the PS.

But I do agree that those working for ESB, Bord Gas, Caoilte etc. have been sheltered from the recession for too long

Heroditas

woodoo wrote: »

The people of Ireland do though which is good for the economy.

Those cuts won't translate into cheaper bills though. The money saved will simply go into servicing the debt associated with the company.
If people want to have more money in their pocket, they should look at switching supplier.

uncle_mick

Heroditas wrote: »

Those cuts won't translate into cheaper bills though. The money saved will simply go into servicing the debt associated with the company.
If people want to have more money in their pocket, they should look at switching supplier.

its not like merely moving from dunnes stores to aldi , regardless of who you are signed up with , ESB still get a cut due to the fact that they have a monopoly on infrastructure , bord gais or airtricity don't send out repair crews whenever their is a power cut , same deal with damage to telephone lines , eircom get a cut of every single landline customer in the country regardless of whether Vodafone or BT are the provider

this sector is still very much sheltered , competition exists with the tiniest ( c )

Max Powers

i think they are the highest paid electricians in Europe. Now i wonder why electricity is so expensive...