The energy regulator, Mr Tom Reeves, has sanctioned a fresh 3.5 per cent rise in electricity prices to begin in the new year.
A few weeks ago Mr Reeves approved a 9 per cent increase in response to concerns about rising fuel prices and their impact on ESB. This increase has been in place since October 1st.
The latest increase is likely to draw a negative reaction from small business groups and consumer advocates. Mr Reeves said the increase was needed so the ESB could meet the costs of overhauling plants and providing emergency generation, known as "peaking capacity".
He said the company was also facing costs of about €24.9 million because of carbon emissions in 2005.
Mr Reeves revealed that in January customers will face a variety of increases, although the average figure is 3.5 per cent. Domestic customers will have to pay 4 per cent, non-domestic general purpose customers are facing a 1.45 rise. Big industrial customers are facing increases of 3.5 per cent.
The ESB must remain within these various pricing categories, although its commercial rivals, like Viridian and Airtricity are entitled to undercut the published rates.
From February, the whole electricity market will open up to competition. So far few companies have come forward to enter the domestic market, Airtricity and Energia, the supply arm of Viridian, are likely to explore the new opportunities. Bord Gais Éireann is another possible entrant.
The expense involved in setting up a billing system and marketing a new brand to the market is likely to put off new entrants.
The dominance of the ESB in the market is also regarded as a negative by potential new entrants.
Meanwhile, Airtricity has been granted planning permission for a 100MW wind farm in Stirlingshire, Scotland. It is expected to supply green energy to around 55,000 homes.
Construction is expected to begin next spring, with the wind farm generating power a year later. Airtricity chief executive Mr Eddie O'Connor said the decision was a major vote of confidence in wind energy's future.
