The price paid by business for electricity has barely increased in real terms over the last decade, while householders have been hit with a 13 per cent rise, claims a new report.

The report by the consultants Kema, on behalf of Eurelectric, which represents European utilities, appears to contradict recent reports from Eurostat, the EU's statistics agency, and the competition directorate of the EU.

The consultants carried out an analysis of European electricity prices over the period 1995-2004, including in the Republic. They found that in spite of soaring coal and oil prices and increasing cost-burdens - taxes, levies and charges - price reductions were achieved by many utilities.

The report says that price decreases achieved would have been much more pronounced had it not been for the fuel price hikes and higher levies over the same period. The report points to the extra burden of the public service obligation (PSO) levy, which is used to assist renewable energy projects.

The survey claims to use "real" prices, by separating out items like taxation, public levies and network charges. The survey breaks out the cost of VAT, the PSO levy and various network charges. Based on this exercise it estimates that the real price of electricity to business has only increased by one per cent in the period 1995-2004, although it does acknowledge that prices during this period for householders have risen by 13 per cent.

A table in the report suggests that almost half of domestic prices are made up of VAT, the PSO levy and distribution and transmission charges. These last two charges are much lower for businesses because they are buying in larger quantities.