ATGWU Report on Rising Electricity Prices

[Michael Taft]

The ATGWU has just published a report on the electricity market and it shows how intentional Government policy, not an alleged 'inefficient' ESB with an 'over-paid' workforce, is the driving force behind rising electricity prices. In particular they show that while the cost of producing electricity rose by 37% between 2001 and 2005, prices rose by 67%. Given that it is the Energy Regulator - not the ESB or the market - that sets prices, this gap can be attributed to Government policy to entice and subsidise private sector companies into the market.

They further show that net payroll costs make up only 16% of the total cost of producing electricity. That this proportion has fallen from 22% shows how ludicrous it is to blame a relatively small and proportionally declining input for rising prices.

The ATGWU calls for the power of the Regulator to dictate prices to be removed and to allow the 'market to dictate the price'. They further propose measure to increase competition in the market - which they support - while also providing a road-map to achieving the Government's 33% renewable target.

It is the most comprehensive analysis of the sorry state of the Irish electricity market and can be read at www.generatingunity.com

[SPN]

The return of Reichsfuhrer Ogle!

If he was able to do such damage the last time - when he was blatantly in the wrong - just imagine how he'll be able to advance his career by exposing the stupidity of the electricity "Market".

This will cost the PDs a couple of seats!

[cain1798]

If he was able to do such damage the last time - when he was blatantly in the wrong - just imagine how he'll be able to advance his career by exposing the stupidity of the electricity "Market".

In the wrong? Do you mean the ILDA strike? He and ILDA were proved absolutely right.

[SPN]

Starts out as a good report; it puts the spotlight on many important issues in an effective way........

....... and then they meander off into the usual self serving gibberish we expect from the likes of Brendan D'Ilda which only provides the wingnuts with ammunition for their usual misrepresentation and distraction techniques.

Just goes to show that the Left are as bad as the Right when they want to be.

[FutureTaoiseach]

Union propaganda designed to distract from the inflationary impact of the ESB monopoly and the staggering salaries of ESB staff and the inflationary impact thereof due to the inefficient costs of running this bloated, inefficient monopoly.

[Michael Taft]

Union propaganda designed to distract from the inflationary impact of the ESB monopoly and the staggering salaries of ESB staff and the inflationary impact thereof due to the inefficient costs of running this bloated, inefficient monopoly.

So what specific part of the analysis in the report did you disagree with?

[FutureTaoiseach]

Union propaganda designed to distract from the inflationary impact of the ESB monopoly and the staggering salaries of ESB staff and the inflationary impact thereof due to the inefficient costs of running this bloated, inefficient monopoly.

So what specific part of the analysis in the report did you disagree with?

I think the important thing about this report is what it doesn't say - more so than what it says. It fails to mention the extravagent salaries of ESB staff. It fails to mention the lack of competition to keep ESB on its toes in terms of keeping costs under control in order to allow it price its service competitively. This idea that the regulator is trying to encourage competitors into the market by increasing electricity costs. If so then why did Airtricity have to leave the residential market?

[Limerick Lad]

Union propaganda designed to distract from the inflationary impact of the ESB monopoly and the staggering salaries of ESB staff and the inflationary impact thereof due to the inefficient costs of running this bloated, inefficient monopoly.

The usual PD response when in doubt blame the workers.
Yet you can't refute the argument, that even the Government grudgingly admits that the only way to attract other providers to the marketplace is to inflate ESB prices, so that a "so-called" competitor can undercut them and still make a substantial profit to the cost of us, the consumer who have to pay these inflated prices.

[Michael Taft]

It fails to mention the extravagent salaries of ESB staff.

It goes into considerable length to discuss those 'extravagant' salaries by showing - using the ESB Annual Reports themselves - that they make up a small and proportionately declining input into total costs.

It fails to mention the lack of competition to keep ESB on its toes in terms of keeping costs under control in order to allow it price its service competitively

The issue of competitiveness features on just about every second page. The union supports competitiveness and puts forward an alternative policy to promoting competitiveness - but one that doesn't impact on prices.

why did Airtricity have to leave the residential market?

For the simple reason that there is very little money to be made in the residential sector without large economies. Airtricity and other companies focus on the more lucrative industrial/commercial sector - and they can make money at this because the Government requires the ESB to subsidise many of these private companies, whether its though below market price sales to VIPPs or providing 'free' back-up for wind power.

[SPN]

Union propaganda designed to distract from the inflationary impact of the ESB monopoly and the staggering salaries of ESB staff and the inflationary impact thereof due to the inefficient costs of running this bloated, inefficient monopoly.

It IS Union propaganda, from probably one of the most dangerous rabble rousers in the Trades Union Movement.

But, more importantly, he has right on his side this time - well he had until he decided to bite off more than he could chew. If he had satisfied himself with highlighting the fraud that is "Competition", he would have made a huge strategic leap forward. It was when he started unnecessarily misrepresenting other aspects of the Electricity landscsape for his own ends that he started to lose whatever credibility he had built up.



This doesn't take away from the fact that he highlights an issue that I (and a couple of others - Pax being one) have been talking about for years.

"Competition" is a sham.

We used to have a Citizen owned, not-for-profit, Electricity provider. Back then our electricity prices were the second lowest in the EU (only Greece was lower).

Since we brought in "Competition" our electricity prices have been artificially raised by the regulator to provide "profit opportunities" for private companies.

We now have the second highest Electricity prices in the EU.

Despite this, it is still not possible for a householder to buy Electricity from a competing provider.

Why?

Because the price the Regulator has set for domestic (household) electricity is too low.

If we (the Government) want competition in the domestic (household) electricity "market", the regulator will have to raise prices even higher.



But you do have to admire FT for his ability to trot out the hackneyed old WingNut Talking Points with a straight face. :twisted: