Irish customers who subscribe to digital television with British group Sky face an increase of up to 60 per cent in the cost of installing satellite dishes.

Installation fees will rise to either £60 (#76) or £80, depending on the type of programme package chosen by a customer. This is up from a standard £50 fee charged prior to July.

In addition, customers face a £288 penalty charge if they do not stay with Sky for at least 12 months. This charge would cover the cost of equipment subsidised by the firm.

A spokesman for Sky said yesterday the increases were to cover the cost of developing and introducing digital television services in the UK and Ireland.

It is expected Sky will turn off its older analogue service completely in the Republic within the next month to encourage the uptake of digital TV.

Mr Willie Fagan, director of regulatory affairs at Chorus, said yesterday Sky's price increases underlined the need to introduce parity of regulation for Irish-based cable firms.

Because Sky is not regulated by the Irish telecoms regulator, Ms Etain Doyle, the firm can introduce price increases in the Republic without consulting her.

However, both NTL and Chorus cannot increase prices without gaining the sanction of Ms Doyle.

Although Chorus applied for a price increase many months ago, it has not yet persuaded Ms Doyle to sanction the rise. NTL applied for an increase just a few weeks ago.

"We wouldn't be looking to have Sky regulated as we are but rather an even approach to regulation," said Mr Fagan.