ESB seeks to cut business prices

The ESB is to seek a price reduction for small and medium business customers of up to 5.5 per cent, it said today.

The company said it would not be seeking to change prices charged to domestic users.

Medium businesses will see prices cut by 5.5 per cent, while smaller firms will have their bill cut by 0.4 per cent.

The company has written to the Commission for Energy Regulation (CER), the body which sets energy prices, seeking approval of the reduction, which would come into effect for 12 months from October 1st.

The ESB cut its prices for homes by 10 per cent in May.

“ESB is determined to minimise the impact of energy costs on industry, business and individual households,” an ESB spokesman said today.

Bord Gáis announced earlier this week it is proposing a 9.3 per cent cut in the price of gas for residential customers and 13.6 per cent for small- and medium-sized businesses. The cuts would be in addition to the 12 per cent reduction in gas prices announced by Bord Gáis in May.

The regulator has organised hold an open forum for next week at which the ESB and Bord Gáis Energy will present their price proposals for the tariff year 2009/10.

A decision on the two applications is expected by the end of this month.

The Irish Small and Medium Enterprises Association (Isme) said the "measly" proposed cut in electricity prices for small businesses was an "insult" and should be reviewed.

Chief executive, Mark Fielding said electricity costs for businesses remain far above the EU average. He said reducing costs was "essential for the country's businesses to regain lost competitiveness".

Fine Gael energy spokesmam Simon Coveney said tonight the regulator should demand electricity price cuts for homes and increased cuts for businesses.

"While the ESB’s proposed reduction for medium-sized businesses will provide some relief, the ESB seems to be providing this at the expense of struggling households and small businesses," he said. "The Commission for Energy Regulation must now clarify whether households are subsidising cheaper energy for the business sector.”