OIL PRICES TUMBLE - SO WHY NO DROP IN
ELECTRICITY OR GAS BILLS?
The average wholesale price of oil and gas has fallen by 40 percent but electricity and gas consumers have hardly noticed any price fall.
The average wholesale price of oil and gas has fallen by 40 percent but electricity and gas consumers have hardly noticed any price fall.
‘We were told that
privatisation would lead to cheaper prices but the current experience shows
that this was a lie.
‘Most of the profitable parts
of Bord Gais were sold off cheaply to Centrica, the owner of British gas. The
state held on to the gas pipeline network and kept responsibility for its
safety. But Centrica took over the supply of gas and electricity to 750,000
customers.
‘At the time it was suggested
that privatisation would bring efficiency and lower prices. But despite the
fact that wholesale prices have been dropping for three years, the private
company is profiteering from the situation.
‘The ESB has been subject to
pressure from the EU to make room for greater ‘market competition’ and it was
claimed that this would bring lower prices. To facilitate this change,
consumers are charged a special Public Services Obligation levy to help
subsidise rival firms to enter the market.
‘Prior to the introduction of
competition into the electricity market, Ireland had some of the lowest
electricity prices in Europe for domestic users. Following the introduction of
EU competition rules, the ESB’s prices were set 14 percent higher to encourage
other firms to enter the market. Now despite falling oil prices, there has been
no substantial cut in our electricity bills.
‘Data from the Central
Statistics Office revealed that 15% of the population had difficulty affording
heating at some stage — double the number in 2009. Tens of thousands of gas and
electricity customers have been disconnected. Yet the private companies who
control our energy needs do not care.
‘The reality is that
privatisation does not bring lower prices or more efficiency. Instead it leads
to profiteering and lower rates of long term investment.
‘Before the last election the
Labour Party stated that it was opposed to ‘short-termist energy
privatisation’. But the Labour Minister Pat Rabbitte then went and sold off
Bord Gais to Centrica for a knock down price.
‘It was another promise broken
– another lie told. We should never be fooled again.'