Electricity hikes to fund Midland power plants

One quarter of the price hike for electricity to be paid by every consumer will go towards the running costs of Shannonbridge power station, it has emerged. A report prepared by the Commission for Energy Regulation stated that the new levy would provide support to power stations including the Lough Ree (Lanesboro), Edenderry and West Offaly (Shannonbridge) facilities. The levy will be charged to all electricity customers from October 1. It is expected to result in electricity price rises of between 4 and 5 per cent - an average of €32.76 for householders and €99.03 for small to medium-sized businesses each year. Electricity suppliers have been mandated to source a proportion of their electricity supplies from certain peat, gas and renewable generation plants. The €157m which is expected to be generated by the levy will be used to recoup the extra costs incurred as a result of sourcing electricity from these sources. Some €42m of the money generated from the levy will be used to fund operations at the West Offaly power station in Shannonbridge, from October 1 this year until September 30, 2011. The chairman of the Commission for Energy Regulation, Michael Tutty, stated this week that peat generating stations were important as they made use of an Irish power source and also provided jobs in the Midlands. "The peat generating stations are there because they are an indigenous fuel, it is also more secure than importing gas from abroad, and also gives jobs in the midlands (through) Bord na Móna and the stations," said Mr Tutty. Continued on Page 4