Enda Kenny (Mayo, Fine Gael)

We are always happy to welcome our Scottish colleagues to Ireland.

I wish to ask the Taoiseach a number of questions on the ESB regulatory pricing regime. The Taoiseach will be aware that on 1 October, the price of gas increased by 34% and approximately a 20% increase has been granted to the ESB. It is an increase of 19.4% for residential electricity, 19.6% for small enterprises and 21% for large industrial units. These increases come at a time when the price of oil globally is falling. When the increases were granted, oil was $65 per barrel, $5 higher than it is today.

These increases mean that a number of categories of people are severely affected. Irish families will have noticed the dramatic increase in gas and ESB bills in the past 12 months. The ESB was granted a 25% increase last year. The gas increase will result in an increase of about €25 per household bill each month. That means families, faced with rising mortgage interest rates, are now faced with rising energy rates which will affect them very severely. Questions will have to be asked about whether radiators are kept on during the day or at night, for example. Hundreds of thousands of elderly people, many of them living alone and who need heat, will have to decide whether to heat or eat in some cases — it will be that serious.

Energy costs are crippling for businesses. I advise the Taoiseach that this is a very serious matter. I wish to bring to the Taoiseach's attention a letter I received from an employer of 1,000 people. The point was made that the pricing model for electricity is out of kilter with reality and that since 2001, the energy regulator has granted cumulative price increases of 100% in electricity and 170% in gas. The question is asked how the electricity pricing regime can be correct when the company in question has signed a 12-month oil contract at 22% below the price of oil six weeks ago.

The global price of oil is dropping, and in this country ESB and gas charges are rising through the roof. The point is made by this employer that the only way of dealing with this is to move out of the country. That is a very serious matter. What will the Taoiseach and his Government, who set policy in this area, do about it?

See this speech in context