Follow @PoliticsIE
 
 
 
Page 1 of 9 12345 ... LastLast
Results 1 to 10 of 81

Thread: Cutting back ESB's responsibility -not a good policy?

  1. #1

    Default Cutting back ESB's responsibility -not a good policy?

    A couple of years ago, ESB were asked to raise their prices to encourage competition in the Irish Market. For what?

    Electricity prices were amongst the lowest in Europe, now were middle of the range in comparison to our European neighbours.

    ESB also owned the networks until the creation of a new quango Eirgrid came along, the prospect of a decline in service to the customer increases.

    I have a sense of unease with this whole process.

    Supposing Ryanair was the ONLY semi state player in Ireland providing Air travel at a comparitively low cost, such as your 1 euro to Stanstead plus taxes etc, why would we need to break up Ryanair to encourage competition when Ryanair are the cheapest out there.


    What we've ended up doing is breaking up a competent company to, what I've read, 40% of where it was, and, in the end, we pay more for it with a poorer service. Wait for the call outs. Get ready for: Oh no thats not our area, we look after such and such.

    The ESBs power plants were efficiently run in my opinion with a turnover on equipment at a minimum. A low turnover on staff helps also although they are very well paid. At least we've never had powerouts because the demand couldn't be met.

    In an Island with a market of 4million, the ESB did what was asked of it at the right price. Are we going down the road of competition for competition sake? Because we the customer will be the losers as there are no benefits.

    We talk of keeping Ireland competitive, then we unnecessarily drive up the cost of energy.

    What's it all for?

    Thoughts anyone.
    "There is no such thing as consensus science. If it's consensus, it isn't science. If it's science, it isn't consensus. Period." Michael Crichton.

  2. #2
    Politics.ie Newbie
    Join Date
    Jan 2006
    Posts
    95
    Mentioned
    0 Post(s)

    Default

    Not too familiar with the details, but there is an issue about the ESB recently looking to lower their prices and being refused permission by the regualator. You couldn't make it up !

  3. #3

    Default

    Quote Originally Posted by jerryp
    Not too familiar with the details, but there is an issue about the ESB recently looking to lower their prices and being refused permission by the regualator. You couldn't make it up !
    You mentioned the regulator:

    I heard him on Matt Coopers Last Word and I have to say, he sounded like a computer generated vocal.

    If what you're saying is true, what's the story on competiton again? To drive down prices isnt it?
    "There is no such thing as consensus science. If it's consensus, it isn't science. If it's science, it isn't consensus. Period." Michael Crichton.

  4. #4
    Politics.ie Member
    Join Date
    Aug 2007
    Location
    Dublin, Ireland
    Posts
    746
    Mentioned
    0 Post(s)

    Default

    ESB's Mr Murphy!
    Private profit for public gain!

  5. #5
    Politics.ie Newbie
    Join Date
    Jan 2006
    Posts
    95
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by Ard-Taoiseach
    ESB's Mr Murphy!
    ?

  6. #6
    Politics.ie Member
    Join Date
    Jun 2007
    Posts
    106
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by jerryp
    Not too familiar with the details, but there is an issue about the ESB recently looking to lower their prices and being refused permission by the regualator. You couldn't make it up !
    Yes there was.

    Something about it being anti-competitive.

  7. #7
    Politics.ie Member FutureTaoiseach's Avatar
    Join Date
    Mar 2005
    Location
    Dept. of FutureTaoiseach
    Posts
    7,992
    Mentioned
    0 Post(s)

    Default

    I don't fully share your view Ultan. Even without the current regulatory-model, the ESB monopoly would prevent prices coming down. The salaries of most ESB workers are exceptionally generous. I accept that the model of regulation is flawed. Instead of selling off powerstations to private companies to reduce the ESB's share of the market and encourage price-competition, the govt seems to prefer forcing the ESB to raise prices so as to gradually allow new competitors to erode its market dominance by charging lower. Imho, this is a far slower and more painful route to competition. A better solution would be the report recommendations recently rejected by the govt to sell powerstations to the private-sector. That would negate the need for the regulator to insist on price-increases. At the same time, control of the transmission-grid needs to be taken off of ESB and given to Eirgrid as planned. This is needed because otherwise, the ESB will be able to use its control of this infrastructure to impede competitors entering the market. The status-quo also gives the unions too much power.

  8. #8
    Politics.ie Newbie
    Join Date
    Aug 2007
    Posts
    23
    Mentioned
    0 Post(s)

    Default

    The problem with the system is that the ESB is a monopoly, hence can basically charge what it likes. It has ZERO incentive to try to be efficient - after what are its customers going to do? They have no alternative supplier to choose from.

    The Government was supposed to open the market up to competition and allow you the consumer to choose electricity supplier. In theory, you have had that right since Mid 2005, but the Government screwed up the market liberalisation so badly that not one company has bothered to provide electricity to domestic users (This was the FF and "free market liberals" the PDs government screw up).

    Apparently, eON - Europe's largest electricity supplier - said they wouldn't enter the market because they believed the Government was completely biased in favour of the ESB.

  9. #9

    Default

    Quote Originally Posted by FutureTaoiseach
    I don't fully share your view Ultan. Even without the current regulatory-model, the ESB monopoly would prevent prices coming down. The salaries of most ESB workers are exceptionally generous. I accept that the model of regulation is flawed. Instead of selling off powerstations to private companies to reduce the ESB's share of the market and encourage price-competition, the govt seems to prefer forcing the ESB to raise prices so as to gradually allow new competitors to erode its market dominance by charging lower. Imho, this is a far slower and more painful route to competition. A better solution would be the report recommendations recently rejected by the govt to sell powerstations to the private-sector. That would negate the need for the regulator to insist on price-increases. At the same time, control of the transmission-grid needs to be taken off of ESB and given to Eirgrid as planned. This is needed because otherwise, the ESB will be able to use its control of this infrastructure to impede competitors entering the market. The status-quo also gives the unions too much power.
    What they earn shouldnt matter so long as we the end user get the best prices in Europe. We are trying to make it easy for companies to set up in Ireland and energy cost should be part of the package.

    Why break up the ESB at all?

    Look at the Euro average cost; tell the ESB to keep charges well below the EU average and the carrot would be that they won't be broken up.

    The ESB wins and the customer wins.

    Where's the problem with that.
    "There is no such thing as consensus science. If it's consensus, it isn't science. If it's science, it isn't consensus. Period." Michael Crichton.

  10. #10
    Politics.ie Member
    Join Date
    Aug 2007
    Location
    Dublin, Ireland
    Posts
    746
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by jerryp
    Quote Originally Posted by Ard-Taoiseach
    ESB's Mr Murphy!
    ?
    The responsibility is the ESB's, therefore an apostrophe is needed in the subject line for grammatical integrity.

    As for the pricing structure of the ESB, and any other electricity provider, there should be flexibility built into the system. Some posters here suggest a regulatory regime in which the CER only set maximum prices. That sounds like a good idea, perhaps our Minister for Energy might consider it.
    Private profit for public gain!

Page 1 of 9 12345 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •