The ESB intends to continue pressing its claim for a price increase for domestic customers despite comments on Tuesday by the Minister for Public Enterprise, Ms O'Rourke.

She told the Oireachtas Joint Committee on Public Enterprise and Transport she would give the incoming regulator, Mr Tom Reeves, a clear "policy direction" not to permit the company to increase its domestic charges.

While Ms O'Rourke has consistently opposed the ESB's wish to raise its domestic charges, the company hoped Mr Reeves would have some flexibility on the issue. However, if Ms O'Rourke establishes the policy for him the chances of a price increase being granted are slight.

The ESB has previously stated that if it cannot increase its prices, it will be at a major disadvantage when it comes to facing competition.

Recently it stated that industrial customers are subsidising domestic customers by up to 10 per cent and consequently its tariffs need to be "re-balanced".

While the company declined to comment yesterday, sources said it would continue to press its claim, particularly when Mr Reeves assumes office after the Electricity Regulation Bill is signed into law.

The ESB group of unions are also expected to push the issue in the next few months with Ms O'Rourke. Yesterday Mr Paddy Reilly, the head of the group, said they were "monitoring" the debate on prices and would be studying closely Ms O'Rourke's recent remarks.

The unions are expected to emphasise to Ms O'Rourke that one of the terms in the Cost and Competitiveness Review (CCR), signed by the company, unions and the Department of Public Enterprise, was that the ESB could "re-balance" tariffs shortly before the electricity market was deregulated.

The ESB will publish its annual report and accounts next Tuesday which are expected to show its retained surplus increasing from £160 million to £200 million.