The Commission for Energy Regulation (CER) on Wednesday confirmed a 4.9% hike in electricity prices as disconnections in 2010 surged to 10,678 customers.

The commission said it could only rubber-stamp the decision of the Government to impose a 4.9% rise from next month to pay for the public service obligation (PSO) levy introduced by the Government to support wind and renewable energy sources.

The Government has also decided to continue credits for Large Energy User (LEU) customers in 2010/11 phasing them out over two years from October 01, 2010. The credits are structured in two parts; a kWh and kVA elements, and both elements will be proportionately reduced to a lower level than the current credits which expire on the 30th September.

Speaking about the announcement, IBEC’s head of energy and environmental policy Dr Neil Walker said: “The Government has taken a necessary first step in trying to alleviate the major competitive pressure of high energy costs, which have undermined our productive and export led sectors of the economy. However, our business electricity costs still remain above the EU average, and we urgently need them to come back in line with our competitors.

"60% of Irish companies cite energy costs as the primary non-pay problem for their business. These businesses are under intense pressure to cut costs to compete in very unforgiving international markets where our competitors enjoy lower energy costs. Government and CER now need to look at reducing costs that are under their control, such as network charges which represent about 20% of a typical energy user's bill."

The number of disconnections of ESB, Bord Gáis and Airtricity customers has more than doubled in the four months to July, according to new figures from the CER.

The commission chairman Michael Tutty, told an Oireachtas committee that 10,678 customers have had their electricity disconnected so far this year, more than in the whole of 2009. Some 3,722 customers of the three gas suppliers have been disconnected, also up on 2009.

Tutty said some 2,353 customers were disconnected last July, compared to 800-900 a month last year.

The number of disconnection visits made by ESB Networks staff jumped to 4,583 in July, compared to under 2,000 a month late in 2009, but about half of these visits did not result in disconnection because the bill was settled, a new tenant was in place or access was refused. Each visit, whether disconnection takes place or not, incurs a charge of €86. This and a reconnection charge of €88 must be paid before power is restored.

Tutty added that the fact that a significant proportion of disconnections were not subsequently reconnected showed that the premises were vacant.