Energy cartels in Ireland

[fiannafailure]

An interesting twist on todays headline PS work to rule, in the midst of the deepest recession in Irish history, we find two interesting things about our energy supplies, they are way more expensive than our competitors and they are dominated by semi state companies.

We cannot afford this state of play to continue

| The Post

Electricity prices for medium-sized businesses in Ireland have fallen to 15 per cent above the EU average in the second half of last year from 38 per cent above average in the second half of 2008.

Energy prices fell 15% to end of June, says SEI - The Irish Times - Mon, Jan 25, 2010

Have prices only fallen temporarily in order to make room for carbon taxes in a few months time, this certainly seems to be the case for gas.

This has very real implications for our international competitiveness and our efforts aimed at job creation.

[hammer]

It does amaze me how we accept everything in this country.

We were paying through the nose for electricity so as to encourage competitors into the market - give us back our money !!!

And who tries to blow ESB out of the water - Bord Gais no less.

If we are trying to reduce cost of living why do the Govt muppets not just reduce Vat rate to 0%.

Was the Vat factored into the differential between Ireland & EU average or did they do a sneaky "net price" comparison.

[fiannafailure]

It does amaze me how we accept everything in this country.

We were paying through the nose for electricity so as to encourage competitors into the market - give us back our money !!!

And who tries to blow ESB out of the water - Bord Gais no less.

If we are trying to reduce cost of living why do the Govt muppets not just reduce Vat rate to 0%.

Was the Vat factored into the differential between Ireland & EU average or did they do a sneaky "net price" comparison.

And this monolithic style dominance of the energy industry not alone is anti competitive, how can three semi state companies compete effectively in the same market, but it is having a huge effect on job creation in the energy area.

Incidentially Ireland is getting a new gas supplier this year, the ESB.

You couldn't make it up

[Heorditas]

What a surprise, Pat left this bit out:

However, adjusting for cost of living differences, Irish domestic electricity prices were 4 per cent above the EU average and below the average for high-volume users.

Taking cost of living differences into account, SEI said that Ireland was cheaper for domestic gas, ranging from 15 per cent to 30 per cent below the EU average.

The higher costs are due to the Use of System charges - the very charges that are used to upgade the antiquated grid system.

“Prices are still higher than we would wish, and we must press to increase the deployment of renewable sources of energy,” said SEI chief executive Prof Owen Lewis.

In the current market, deployment of these sources will raise prices.
This is what happens when you put an academic in charge of a body like this.

[martino]

Has anyone here changed over to Bord Gais or Airtricity recently? I was thinking of doing it, supposed to be up to 14% cheaper. Any advise based on experience would be appreciated.

[MPB]

Has anyone here changed over to Bord Gais or Airtricity recently? I was thinking of doing it, supposed to be up to 14% cheaper. Any advise based on experience would be appreciated.

Switch now. I switched to Bord Gais and it took 5 mins on the phone. No hassle at all. No paper work, nothing.

In response to the OP, I agree, this sort of stupidity could only happen in the Irish Public Sector. I have lost all faith in our Public Sector Management and I am now of the belief that if our Semi States and some of our Public Services were fully privatised and regulated, rather than placed in 25% union ownership, both the customer and the employee would be better off.

[martino]

[QUOTE=MPB;2413691]Switch now. I switched to Bord Gais and it took 5 mins on the phone. No hassle at all. No paper work, nothing.

Thanks for that. Have you noticed a drop in your bills since? Was there any hassle/loss of supply with the switchover?

[MPB]

[quote=martino;2413695]

Switch now. I switched to Bord Gais and it took 5 mins on the phone. No hassle at all. No paper work, nothing.

Thanks for that. Have you noticed a drop in your bills since? Was there any hassle/loss of supply with the switchover?

Genuine 10 % decrease in bills. It would be more if I set up a direct debit but I own a couple of small businesses so I decided to allow myself some latitude for the time being by not setting up one at the moment.

There has been no affect on supply or service apart from some initial rudeness from ESB when I rang to inform them and suggested they offered the same reduction. But soon after I received a letter of apology and regret for loss of business and a hope that they would one day see me back as a customer of there,s when they are allowed compete( at the minute they are not allowed).

[martino]

[quote=MPB;2413708]

Genuine 10 % decrease in bills. It would be more if I set up a direct debit but I own a couple of small businesses so I decided to allow myself some latitude for the time being by not setting up one at the moment.

There has been no affect on supply or service apart from some initial rudeness from ESB when I rang to inform them and suggested they offered the same reduction. But soon after I received a letter of apology and regret for loss of business and a hope that they would one day see me back as a customer of there,s when they are allowed compete( at the minute they are not allowed).

Thanks MPB, I'll go and make the change soon.

[fiannafailure]

[quote=Heorditas;2413507]

What a surprise, Pat left this bit out:
[COLOR="Blue"][COLOR="Blue"]However, adjusting for cost of living differences, Irish domestic electricity prices were 4 per cent above the EU average and below the average for high-volume users.

Taking cost of living differences into account, SEI said that Ireland was cheaper for domestic gas, ranging from 15 per cent to 30 per cent below the EU average[/COLOR][/COLOR].

Heorditas
I could have used that quote, I did after all point readers at the link and expected them to read it, I wondered though what those cost of living differences were before I posted the link and then it hit me, that sentence tells us that even when we take our higher cost of living into account, we then pay an extra 4 per cent.

Again taking cost of living differences into account we pay less for gas, without taking our elevated cost of living into account, we pay the EU average, in actual fact we pay more than the EU average.

But what a masterful use of words to twist the truth, spin at its finest

How about this for spin, we are paying more than eveybody else.

The higher costs are due to the Use of System charges - the very charges that are used to upgade the antiquated grid system.

That is a whole different story, we will come back to this little nugget

[COLOR="Blue"]“Prices are still higher than we would wish, and we must press to increase the deployment of renewable sources of energy,” said SEI chief executive Prof Owen Lewis.[/COLOR]

In the current market, deployment of these sources will raise prices.
This is what happens when you put an academic in charge of a body like this.

As I have pointed out before, in fact ad infinitum, wind energy, even with the REFIT tariff, is up to 20% cheaper than gas or coal inc capacity payments.

However my question still stands, how can three semi state companies compete with one another in the same markets.