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Electricity Price Increase

  • 07-08-2010 07:58AM
    #1
    Registered Users, Registered Users 2 Posts: 2,892 ✭✭✭


    More smart thinking from those feckin idiots, are they living in the real world at all. Here they are telling us to be come more competitive and they are ramping up all the costs that they are in charge of themselves.
    The PSO levy was established by the Department of Public Enterprise in 1999 and is levied upon customers to offset costs faced by the likes of the ESB and Airtricty because of their state obligation to buy a certain percentage of peat generated and renewable electricity.At present, the Public Service Obligation (PSO) levy is charged at a rate of 0%

    5% hike in electricity bills approved by Energy Regulator

    I don't understand why we should have to be subsidising ESB because they are still using Peat stations. Surely it's a bad business decision on their part that they haven't modernised but yet we are the ones that have to pay for it. It's not like they couldn't absorb this cost out of the profits they made this year.
    ESB revenues for 2009 amounted to €3.1 billion with profits of €580 million

    It would be good to know what share of this goes to Airtricity and ESB because Airtricity are in Ireland since 2000. So why is this levy only being imposed now.


«13456

Comments

  • Closed Accounts Posts: 9,364 ✭✭✭ei.sdraob


    I don't understand why we should have to be subsidising ESB because they are still using Peat stations.

    its politics @HTW :(

    these peat stations employ people and we cant be firing anyone in this day and age from (semi)public service you know (i worked in ESB while there are nice people there i see so much sickening waste!)...

    especially considering these stations are in the backyards of certain politicians and are the only major employer in area


  • Registered Users, Registered Users 2 Posts: 19,768 ✭✭✭✭kippy


    I was just about to post this.

    It's a disgrace when you analyse what is happening here.

    1. This is a MAJOR driver of the cost of living, cost to do business here and the cost of producing anything in this country.
    2. This is a cost that the government have a DIRECT input into via the ESB and various regulatory instruments.
    3. This is coming at a time when the next budget will see another chunk of disposable and some indisposable income taken out of EVERYONES pockets.
    4. I've said on other threads but these cuts are a lot easier to take for everyone if the costs of living and doing business are reduced. The government should be doing everything in their power to reduce these costs. Instead we see the opposite, first on fuel with these "Carbon" taxes, extra excise and now here.
    5. The ESB, I believe have just dropped a cool billion to buy some northern Irish company - this appears to be how they intend to pay for it. What a fcuking joke............I would rather they didnt expand and passed the savings onto the consumer.
    6. We now have more windfarms/renewable than ever, is this not having any impact on the cost of electricity at all?

    If energy is costing so much to produce in this country we should
    A: Get a few more interconnectors put in to England/Europe and buy far cheaper, mostly Nuc power from them (since we dont want to build on ourselves)
    B: Run the ESB as it should be run. A not for profit organisation. As someone mentioned there was a half a billion profit last year......absolutely crazy....most of that is sunk in to foreign investments by the looks of it.

    This really is making my blood boil, more than any paycuts/tax increases so far. Makes it boil almost as much as government induced rises in petrol/diesel/oil.....
    When is someone going to call time on this joke.


  • Closed Accounts Posts: 959 ✭✭✭changes


    Its a little bit here and a little bit there. They have their hand in every pocket and your wallet and bank account. It all adds up and no doubt there is more to come.

    Can we in anyway bring this sorry government down and bring on a general election.... this shower need a generation out of office imo.


  • Closed Accounts Posts: 10 goodgirl7279


    Is that just esb or airtricity and bord gais as well?


  • Registered Users, Registered Users 2 Posts: 19,768 ✭✭✭✭kippy


    Is that just esb or airtricity and bord gais as well?

    Its a wholesale price so it effects all operators I believe, which makes it more of a joke.


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  • Registered Users, Registered Users 2 Posts: 2,892 ✭✭✭Head The Wall


    Is that just esb or airtricity and bord gais as well?

    It just mentions that ESB and Airtricity will be receiving the benefit of it. Everyone in the country though will have to pay it regardless of who supplies your power

    ESB statement on annual report 2009
    ESB net debt increased during 2009 by €143 million to €2,231 million.
    The largest pension deficit at any state-owned company is at ESB, where it stands at €2.2bn
    In 1981 there were five staff members for every pensioner. This meant that for every pound that was paid into the scheme only 50p was paid out. However, after years of voluntary redundancies and the replacement of staff with contractors there are now more pensioners in the ESB than there are staff working .This means that for every euro paid into the pension scheme now, approximately €2 is being paid out.


  • Registered Users, Registered Users 2 Posts: 19,768 ✭✭✭✭kippy


    It just mentions that ESB and Airtricity will be receiving the benefit of it. Everyone in the country though will have to pay it regardless of who supplies your power

    ESB statement on annual report 2009
    Potentially why the costs have increased.

    Why the fcuk are they attempting to buy NIA then?

    Still, I can now see why they are increasing prices - all that being said, there are better ways to plug pension deficits than to stifle growth on the whole island.


  • Registered Users, Registered Users 2 Posts: 43,038 ✭✭✭✭SEPT 23 1989


    this will come into effect in November


  • Closed Accounts Posts: 131 ✭✭g32


    Probably to pay for the Fat Cat Overpaid ESB workers.

    ESB Worker gets paid EUR 20.00 per hour.

    ESB must be forced into pay cuts.

    Then Fianna Fail/Green party can call a general election.


  • Registered Users, Registered Users 2 Posts: 2,892 ✭✭✭Head The Wall


    Average wage in the ESB works out around €40 an hour,

    Average pay and pension costs of €100,000 per year


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  • Registered Users, Registered Users 2 Posts: 2,629 ✭✭✭ART6


    Perhaps HTW's post #7 says it all why governments should not be allowed to run businesses. If ESB was a private company it would be insolvent. As it is the taxpayer/bill payer will pick up the tab. It might sink half the b****y employers in Ireland, but "that isn't our fault" (quote Brian Cowen)

    Peat burning power stations? Explanation Mr. Gormley? Or are you more interested in stopping people from cutting some turf for their own fires (Oh God -- dioxins, carbon dioxide, global warming-- we must stop it) or counting frogs and bats?

    Personally, in desperation, I look forward to an European federal state where Ireland becomes simply a district of Europe and actual government is provided by people who are not constrained by the parish pump, the brown envelope, and the wild extremes where tail parties with no discernable public vote (PDs, Greens) end up wagging the government dog. It seems to me clear that none of the current crop of what are laughingly called politicians in any of the parties have any idea of what they are doing other than furthering their own careers.

    Faced with the emergence of the eastern economies, which are not known for their lack of high tech science, we have to get our costs down dramatically. Semi state companies must go, and political expedients tailoring their business plans must stop.


  • Posts: 6,219 ✭✭✭ [Deleted User]


    What a joke, what will go up next :rolleyes:

    How about cutting wages in the ESB, most people have seen pay cuts why not ESB workers ?


  • Closed Accounts Posts: 23,315 ✭✭✭✭amacachi


    Absolute ****ing joke. I've been thinking for a while there should be a load of interconnectors between here and Britain so we could cover the country with windfarms and sell them electricity, now I think we should do it so we're not being ****ing ripped off so much.


  • Registered Users, Registered Users 2, Paid Member Posts: 6,751 ✭✭✭flutered


    they pulled this one to take our minds off the fiddlers ? 3, no mention of that on the 6.01 news either friday or this evening. people want to build a few air tricity gadgets in my area but the co. council in their wisdom ? says no way, a few people are stopped from saving turf because of the envoirenment, but the e.s.b. can harvest as much of it as they like, then charge us for it, also not a peep from the so called opposition about it, methinks a vote in this country is a vote wasted.


  • Closed Accounts Posts: 10,001 ✭✭✭✭thebman


    I imagine this increase is because the regulator and the government believe that not enough people have switched to bord gais and that they have not done their job in creating incentive for people to move and have not created competition.

    :rolleyes:

    It is a moronic way to go about trying to create competition but our government only understands ripping people off.


  • Registered Users, Registered Users 2 Posts: 19,768 ✭✭✭✭kippy


    thebman wrote: »
    I imagine this increase is because the regulator and the government believe that not enough people have switched to bord gais and that they have not done their job in creating incentive for people to move and have not created competition.

    :rolleyes:

    It is a moronic way to go about trying to create competition but our government only understands ripping people off.

    I "think" this price rise will apply to Board Gais and others as well but not entirely sure.


  • Registered Users, Registered Users 2 Posts: 2,892 ✭✭✭Head The Wall


    kippy wrote: »
    I "think" this price rise will apply to Board Gais and others as well but not entirely sure.

    Firstly on page 11 of the CER Decision paper there are two words in the wrong order, you would imagine somebody should have read this before publishing. These people don't instil much confidence initially.

    CER Decision paper and Resposes here


    It looks like the bulk of this goes to ESB which is not surprising at all
    It is designed to support the national policy objectives of security of energy supply, the use of indigenous fuels (i.e. peat) and of the use renewable energy sources in electricity generation. Specifically, the proceeds of the levy are used to recoup the additional costs incurred by the ESB and other suppliers in having to source a proportion of their electricity supplies from such generators.



    More rubbish here
    For the 2010/2011 electricity tariff year the PSO levy is forecast to amount to €156.63m. This is a very substantive increase on recent PSO periods when the levy was running at, or close to, zero

    Airtricity have an interesting response to the Levy, They want to know why the ESB Peat stations get a much larger share of the levy than the Edenderry Plant which is privately owned.

    This smacks of favouritism in a bad way
    • West Offaly, Lough Ree and Edenderry Power stations are all peat fired power stations of a similar age, yet the proposed PSO costs associated with the ESB Power Gen plants are much larger than those of the Edenderry plant. The difference in generation capacity associated with the ESB PG peat plants does not account for the sizable gap between the costs for the plants.

    The response the CER gave basically sounded like it cost more to run the ESB stations than the comparable Private one so they were entitled to a levy instead of them becoming more economical.


    This whole thing stinks to high heaven


  • Registered Users, Registered Users 2 Posts: 2,629 ✭✭✭ART6


    The whole insane business is again the Greens exercising their single shared brain cell -- the one that seems to want to tax and regulate the human race out of existance in favour of bats and frogs.

    From what I read the proceeds from this latest attempt at highway robbery are intended to further the environmental blight of wind turbines, and to pay for more peat-burning power stations when the same politicians have banned individuals from harvesting their own turf where their families have done for generations. What the Hell is environmentally sound about mass burning peat? IT IS NOT A RENEWABLE RESOURCE GORMLEY. It takes many thousands of years to lay down a peat bog.

    So in the Green's strange world Paddy O'Reilly going out into the hills to cut turf for his fire, and even maybe sell some to locals, is unacceptable environmental damage, but a new ESP power station scalping the top off the landscape as they did at Edenderry if environmentally sound.

    If ever I needed convincing that this country is run by corrupt, lying fanatics who may well be certifiable, I don't need it any longer. I have now taken up praying, since I suspect that all we can hope for to rid us of these cretins is God's lightning.


  • Moderators, Science, Health & Environment Moderators Posts: 6,391 Mod ✭✭✭✭Macha


    Environmental blight of wind turbines? That's a new one. Yes, I suppose when you compare it to open-cast coal mining or oil drilling it can be quite..oh wait. never mind.

    As for the turf-cutting for generations, they've had 11 years of a derogation from what is an EU Directive. The attempts to lay that one at the feet of the Green Party betrays a lack of understanding of the legislation involved.


  • Closed Accounts Posts: 16,391 ✭✭✭✭mikom


    taconnol wrote: »
    Environmental blight of wind turbines? That's a new one. Yes, I suppose when you compare it to open-cast coal mining or oil drilling it can be quite..oh wait. never mind.

    Of which there are loads going on in Ireland..oh wait. never mind.
    taconnol wrote: »
    As for the turf-cutting for generations, they've had 11 years of a derogation from what is an EU Directive. The attempts to lay that one at the feet of the Green Party betrays a lack of understanding of the legislation involved.

    No they'd prefer the importation of Polish coal and Arab oil to keep the houses heated instead. Still, I suppose they are able to tax those fuel sources, so that's ok..


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  • Moderators, Science, Health & Environment Moderators Posts: 6,391 Mod ✭✭✭✭Macha


    mikom wrote: »
    Of which there are loads going on in Ireland..oh wait. never mind.
    Ah yes, let us never mind what happens outside our borders, regardless of whether we end up importing these materials.
    mikom wrote: »
    No they'd prefer the importation of Polish coal and Arab oil to keep the houses heated instead. Still, I suppose they are able to tax those fuel sources, so that's ok..
    ?


  • Closed Accounts Posts: 16,391 ✭✭✭✭mikom


    taconnol wrote: »
    Ah yes, let us never mind what happens outside our borders, regardless of whether we end up importing these materials.


    ?

    Whether?


  • Moderators, Science, Health & Environment Moderators Posts: 6,391 Mod ✭✭✭✭Macha


    mikom wrote: »
    Whether?
    or not (I meant to add) :)


  • Closed Accounts Posts: 110 ✭✭30H!3


    This is an absolute joke.

    The only thing that can save this economy is competitiveness in the global market. The foreign multinationals will sure want to stay in Ireland with a nice 5% rise in (already too high) electricity costs. Well done minister ryan, real smart move.
    has also written to the Commission for Energy Regulation (CER) warning that the levy will cost between 550 and 800 jobs as multinational companies are under pressure from head office to cut costs.

    If they think this move will only cost 800 multinational jobs they are dreaming. If you count in the amount of domestic jobs in hotels/restaurants and other small businesses the figure will be much higher.


    There are 8,000 staff there with an average salary of €70,000 each. It's simply unsustainable but they know they can't be touched. An implosion is inevitable (in esb among other state/semi-state bodies).


  • Registered Users, Registered Users 2, Paid Member Posts: 6,751 ✭✭✭flutered


    when multi national jobs are lost people have to travel the world to get them replaced, also people have to be hired to do this, it also justifys highly expensevly and highly pensioned peoples existence.


  • Registered Users, Registered Users 2 Posts: 3,286 ✭✭✭dubhthach


    Energy regulator on the radio at the moment going on that "we have to raise 5% to encourage renewables, because we depend so much on imported fossil fuels" , if you ask me that's even more reason for us to build nuclear. Wind power will never cover enough of our power needs.

    It's also a disgrace that the ESB make over 500million in profit. Let we the consumers have to take the pain. From what they are saying 87million from this levy will go the ESB alone.


  • Closed Accounts Posts: 9,364 ✭✭✭ei.sdraob


    dubhthach wrote: »
    Energy regulator on the radio at the moment going on that "we have to raise 5% to encourage renewables, because we depend so much on imported fossil fuels" , if you ask me that's even more reason for us to build nuclear. Wind power will never cover enough of our power needs.

    It's also a disgrace that the ESB make over 500million in profit. Let we the consumers have to take the pain. From what they are saying 87million from this levy will go the ESB alone.

    Yep, we need cheap and reliable energy

    how much raping will the people take when it comes to electricity prices (lol just remembered parallel thread on consumerism, is electricity a need or a want ;) )

    before they realise that high prices affects so much of the economy in a negative way at a very bad time and consider discussing nuclear

    bleh


  • Registered Users, Registered Users 2 Posts: 2,629 ✭✭✭ART6


    taconnol wrote: »
    Environmental blight of wind turbines? That's a new one. Yes, I suppose when you compare it to open-cast coal mining or oil drilling it can be quite..oh wait. never mind.

    As for the turf-cutting for generations, they've had 11 years of a derogation from what is an EU Directive. The attempts to lay that one at the feet of the Green Party betrays a lack of understanding of the legislation involved.

    As we have discussed before on another issue (the incinerator) perhaps a true life cycle analysis on wind turbines might be appropriate? It is not sufficient to state that they can generate X Megawatts of power free of charge using wind. There are the environmental costs of their raw materials and their conversion into turbines, the cost of installation and transmission lines etc. Environmental blight? In my view yes. If you sought planning permission for a 40 metre concrete tower on your land, would it not be likely to be rejected on visual impact grounds? However, if you want to install a hundred wind turbines in the landscape, that's OK even if their visual impact is appalling -- unless of course you consider a mass of concrete towers with huge propellors on top of them to be aesthetically pleasing.

    In any case, wind power will never supply our energy needs, or even a realistic percentage of them, unless we cover the whole landscape with them. Even if we do, the extra unit price determined by the Regulator and the government to encourage them means that their output will always be expensive compared with other sources of energy (coal, oil, nuclear, or even, *Heaven forbid* waste incineration). So we pay more for something that is inadequate and unreliable. Wind turbines don't replace power stations because they cannot guarantee output.

    I am aware that the private turf cutters have had 11 years of derogation from the EU. All I am questioning is how can the ban be supported on one hand while planning massive peat excavation for new power stations on the other? I would guess that the turf cutters will have and have had negligible impact upon peat bogs (they've been doing it for enough generations), while the new power stations will wipe out the bogs in a few tens of years at best. Are we to believe that the EU want individual turf cutters to stop doing it on environmental protection grounds, but are happy with the government plans for the ESB? If so then Ireland is not the only asylum run by the inmates.

    Yes, I lay it at the feet of the Green party because they espoused the idea with considerable enthusiasm while imposing a levy on power supplies to encourage turf burning power stations. Banning extraction of (I'd guess) at most a few thousand tonnes a year in favour of hundreds of thousands of tonnes is, in my view at least, typical of the fanatical and unscientific attitues of the Greens.

    As other posters have said in this thread, given that peat is the only natural resource we have and it is not renewable, then nuclear is the only realistic option and sooner or later the people and the government are going be forced out of their cosy green mindset and accept reality. Possibly at that point the Greens will suffer apoplexy and hide away in their caves for their bones to be found by future archeologists. That, for me, is an appealing potential outcome of nuclear power:)


  • Registered Users, Registered Users 2 Posts: 13,226 ✭✭✭✭jmayo


    ei.sdraob wrote: »
    its politics @HTW :(

    these peat stations employ people and we cant be firing anyone in this day and age from (semi)public service you know (i worked in ESB while there are nice people there i see so much sickening waste!)...

    especially considering these stations are in the backyards of certain politicians and are the only major employer in area

    A few years back there was a station being closed down in the Midlands and yet there were no job losses. :rolleyes:
    dubhthach wrote: »
    Energy regulator on the radio at the moment going on that "we have to raise 5% to encourage renewables, because we depend so much on imported fossil fuels" , if you ask me that's even more reason for us to build nuclear. Wind power will never cover enough of our power needs.

    It's also a disgrace that the ESB make over 500million in profit. Let we the consumers have to take the pain. From what they are saying 87million from this levy will go the ESB alone.

    Yet another needless quangoe setup by guess who, bertie.
    http://www.cer.ie/en/about-us-overview.aspx

    They are supposedly keeping ESB prices high, so that other players can compete.
    Another player competing is actually another semi state.
    WTF is that about ?
    We have the third highest electricity prices in the EU and are going to ramp them up even more.
    Do these idiots have any idea how that will affect industry and consumers ?

    He claims we have to do this to ensure prices are cheaper in the future.
    If these eejits keep going like this there ain't going to be much of a future.
    ONLY 87 million is going to the ESB.
    So where is the rest going ?

    If we want real non fossil fuel energy reliance lets start building a nuclear plant.

    I am not allowed discuss …



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  • Registered Users, Registered Users 2 Posts: 2,892 ✭✭✭Head The Wall


    jmayo wrote: »
    ONLY 87 million is going to the ESB.
    So where is the rest going ?

    Lough Ree which is an ESB Peat power Station receives €29,946,533

    West Offaly which is an ESB Peat power Station receives €42,134,897

    EPL which is a Bord Na Mona owned Peat power station receives €6,116,780

    AERs (Technologies include wind energy, small-scale hydropower, combined heat and power (CHP) biomass (landfill gas), biomass-CHP; biomass-anaerobic digestion and offshore wind) Receives €13,500,000

    Capacity 2005 (Aughinish Alumina and Tynagh power stations receive support under the PSO levy???) Receives €14,000,000

    REFIT (This covers five categories of plant. These are Large Wind, Small Wind, Hydro, Landfill and Biomass.) receives €29,726,233

    Can't get much more of a breakdown than that. I'm all for renewable energy but I don't see why we are supporting two relatively modern and new power plants under the CAPACITY option €14m.

    We are giving ESB €73M to keep non eco uncompetitive plants running.


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