Laois councillors demand electric companies reverse standing charge hike

Laois councillors have slammed as "unfair" and "gouging" the increases by electricity companies in standing charges to customers.

Several Irish electricity suppliers are increasing the unavoidable standing charges on top of huge hikes in electricity and gas charges per unit used. 

Cllr Catherine Fitzgerald from the Portlaoise Municipal District got full support in her motion to the September council meeting, to "stop the standing charge increase" for both gas and electric customers.

"Everyone is talking about €300 to €700 on the average house that could be standing charges, regardless of your usage. It's unfair when people are doing their best to reduce usage. This fixed charge cannot be avoided. Taxis need approval to oincrease charges from the regulator, it seems energy companies can do what they want despite being an essential service. I think it's downright wrong," she said.

Cllr Willie Aird seconded her motion.

"When a house is vacant this can accrue to €700 or €800 and not a light turned on," he said.

Cllr James Kelly said that with ESB's profit last year of €357 million, the increase was "price gouging". 

"The government has a 'reduce your use' campaign yet standing charges will make sure you haven't got lights in your house," he said.

Cllr Caroline Dwane Stanley said it puts jobs at risk too.

"This winter will be a serious tester for families and whether they can afford to turn on heating or not. There are huge profits in energy companies, this is a windfall tax on those companies. It's not possible to stay going not just for households but businesses too, jobs are at risk," she said.

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"These energy companies seem to throw up any excuse - 'a cat had kittens' - any excuse to put up prices yet they have all those profits," agreed Cllr Barry Walsh.

"It's kicking people when they're down. They should be reducing it, and saying look we'll give you a chance. It's time for the ESB to live in the real world," said Cllr Ollie Clooney.

Pinergy recently raised its standing charge costs rose by almost 30%, and electricity rates by approximately 18%.

Last August Electric Ireland increased its standing charges by €2.36 a month on electricity and €3.52 on gas, while increasing residential electricity bills by 10.9% and gas bills by 29.2%. From October 1 it will further increase residential electricity bills by 26.7% and gas bills by 37.5%, but with no increase this time to the standing charge.

SSE Airtricity will increase its standing charge by 8% as well as gas prices by 46.3% and electricity by 45.2%. Energia will increase electricity rates by 33.5% and gas rates by 47.11% on October 7. Bord Gáis Energy is increasing electricity bills by 34% and gas by 39% from October 2. 

The companies say the price rises are due to the international energy crisis and rise in gas prices.