EU plans for radical cuts in greenhouse gas emissions are likely to lead to increased energy charges for the consumer, according to the ESB.
However ESB chief executive Pádraig MacManus said it was not possible to specify at this stage how great the increases would be. He suggested the impact on individual householders would be minimal if they successfully reduced their electricity consumption, as envisaged under the plan.
Consumers are likely to face higher tariffs at times of peak demand as part of a new strategy to link domestic prices more closely to the cost of producing electricity. Typically, these times of peak demands are 4.30pm- 7.30pm in the winter, when family dinners are being prepared but industry and business are still working.
"The big issue is how we get people to reduce their demand by 20 per cent. Overall, bills will not increase if this target is met," said Mr MacManus. Customers would be encouraged to prepare the dinner and engage in other activities involving the consumption of electricity outside this peak period.
Key to the new pricing strategy will be the installation of so- called "smart" meters to read electricity consumption in all two million households in the State.
Smart metering will enable the ESB and consumers to tell how much power is being consumed at any particular time of the day or year. The ESB aims to complete this task by 2012. The installation of smart metering will cost €600 million - €1 billion and it is likely that customers will have to foot some or all of this cost.
The further development of renewable energy sources will also cost money, as will the decommissioning of existing oil-fired generation plants - due to be phased out in two years time.
Mr MacManus said the impact of climate change measures would be greater on Ireland than elsewhere.