Customers will pay an average five per cent more for electricity from January after the Commission for Electricity Regulation today granted ESB a price rise.
Domestic bills are due to increase by 5 per cent while small and medium-size businesses face an average increase of 4 per cent. Bills for large commercial users will go up by 6 per cent.
The Green Party and Fine Gael said the price rise showed up Government energy policy as a failure, while the Labour Party described the increase as a form "stealth tax".
The average two-monthly bill for domestic customers will now increase by €4.80 to just over €100. "Notwithstanding today's announcement, Irish domestic electricity prices will still be in line with the European average," the commission said in a statement.
It said the need for continuing investment in the electricity network, increased costs and ESB's obligations to support renewable energy and peat fired generation where the main reasons for the price rise.
The need to import electricity from Northern Ireland to meet peak demand was also cited as reason. The Green Party's Mr Eamon Ryan said the provision amounted to half the price rise.
The Green's energy spokesperson claimed today's announcement meant electricity prices had increased by 23 per cent in the last three years and was further evidence of the Government's failed policies.
Mr Ryan said: "The Government will no doubt wash their hands of the matter saying that it is up to the regulator and the industry to sort out these problems. "However, industry experts throughout the world are increasingly saying that electricity generation is one area where the state does have to intervene to protect our economic, social and environmental interests.
He also expressed concern about the effect the price rise would have on inflation.
Labour energy spokesman, Mr Tommy Broughan, was critical of the increase in light of ESB's €250 million profit in 2002. But he said the Government's decision to direct 20 per cent of the profits to the Exchequer as a cause for the increase.
"This is a vicious cycle whereby the government takes from ESB, and ESB recoups that money from the consumer. This arrangement represents another stealth tax on Irish families and should be reviewed immediately," he said.
Fine Gael's Mr Simon Coveney was also critical of the Government's role saying its efforts to deregulate the market had failed.
"Three years ago this Government began the process of deregulating the market in Ireland. That process has been a failure to date as the ESB remains in an overly strong monopolistic position in relation to electricity generation. "The only way the public and business in Ireland will see electricity price reduction in the future is if the Government adopts a more aggressive approach towards deregulating the electricity market," he said.