Michael Finucane (Fine Gael)

Senator Leyden referred to the increase in energy costs. Many of us fear the projected increases in electricity and gas prices from 1 January 2007. Senator Leyden also referred to the drop in oil prices. The Joint Committee on Communications, Marine and Natural Resources will possibly extend an invitation to the regulator to meet with us to discuss this matter.

If one looks at an ESB bill one will note that VAT is paid at 13.5%. Also included on the bill is a standing order charge and a public service obligation which equate to approximately 21% of one's overall bill. The Government takes a dividend of approximately €80 million from the ESB. There is also an onus on the Government to take action if it wants electricity prices to decrease. If prices escalate out of all proportion, which is currently the case, we must consider reducing the VAT element of electricity bills. Liberalisation of the market has meant nothing to domestic consumers who have no choice other than to use the ESB. Perhaps Senator Leyden will ask the Minister for Finance to reduce VAT.