THE ESB is looking for a 30pc increase in the price of electricity. If granted -- and it could be in early autumn -- it would add about €45 to the average two-monthly bill and push the average bill for a year to more than €1,100. The increase will pile on the misery for hundreds of thousands of households in the wake of big increases in the cost of heating oil, gas and coal as well as petrol and diesel. Bord Gais has already signalled a 19pc rise in their bills from October.

The Irish Independent understands the ESB is looking for the increase because the surge in oil prices has driven up the cost of generating electricity. The increase will have to be sanctioned by the independent Commission for Energy Regulation (CER). In the past, it has shaved an average of just 3pc-4pc off such requests. On that basis, it would appear to be inevitable that consumers face a huge hike in their electricity bills.

The average bi-monthly bill now costs €145, making the annual average €870. A 30pc rise would push that to €1,131. And it is understood the ESB is likely to flag its even bigger hike when it unveils its annual report in the coming weeks. The company has not yet fixed a date for the report launch, which a spokesperson described as a "moveable feast", but it usually takes place in mid-July.

Over the summer, it will then make an application for an increase to the CER, which will consider what level of increase to grant the ESB.

Even though an ESB spokesperson said that he was not in a position to comment on any possible increases, the CER said that the "indications" were that there would be a price rise.

The CER spokesperson also said that a price increase request on the same scale as Bord Gais would not come as a shock. "We wouldn't be surprised if requested prices are of that order," the spokesperson said. "But I couldn't really say at this stage until we get firm figures from the ESB."

Poverty

However, the CER, who have previously reduced ESB price hike appeals by 2pc to 3pc, said a request of around 20pc to 30pc would be "new territory".

Any ESB increase is likely to hit those on lower incomes hardest, and families caught in the 'fuel poverty' trap in particular. Sustainable Energy Ireland (SEI) yesterday estimated that 10pc, or 144,171, homes were experiencing fuel poverty -- meaning they spend more than 10pc of their disposable income on heating costs.

Those on lowest wages spend an average of 13pc of their disposable income on energy while higher earners only pay out 1.7pc. If implemented, the increase would follow on from a similar move by Northern Ireland Electricity, which is raising its prices by 14pc next month and has requested a second hike of 15pc in the autumn.

The rising costs of materials like gas, coal and oil on the wholesale markets has put suppliers like the ESB and Northern Ireland Electricity under pressure. Since the last price review last year, the cost of gas and oil has gone up by 80-100pc.

(source:www.irishindependent.ie)