The energy regulator has started a review of the 19 per cent increase in electricity prices approved back in September as oil prices slide to their lowest level in nearly 18 months, writes Emmet Oliver.
The announcement then of the increases prompted an angry reaction from consumer and business groups. At the time, regulator Tom Reeves made it clear that "the main driver of the price increase is increased fuel costs".
Crude oil was trading at about $70 a barrel at the time and had been higher. However, oil prices have fallen steadily since and yesterday touched $54.86 before rallying slightly to $55.99.
Following the decline in oil prices over recent weeks, Mr Reeves's office - the Commission for Energy Regulation - has been considering a review. It is understood that such a review has now begun.
It is unclear when the results will be announced. However, with the 19 per cent increase due to kick in on January 1st, it is expected that any amendment to that level of increase would take place before the end of the year.
Sources working in the energy industry last night speculated that a few percentage points might be deducted from the original increase, though they said it was hard to be precise at this point.
Any decision to lower the rate of increase is likely to be welcomed by consumers and businesses.
In recent weeks, some major multinationals based in the Republic have warned that jobs could be jeopardised as a result of a number of substantial rises in electricity prices in recent years.
If the full increase goes ahead, the average domestic bi-monthly electricity bill will rise from €126 to €150. Households using gas have also been hit - the price of natural gas went up by 34 per cent from October 1st.
An Bord Gáis, which provides gas to the vast majority of homes in the Republic, said that "unprecedented increases in the price of wholesale natural gas in recent years" had led to the price rise, which it described as "hugely regrettable" but also "completely unavoidable".
It has emerged that gas prices will also be looked at in the review.
Each year, the energy regulator and his staff examine the likely costs for the ESB in the year ahead. An eventual increase is sanctioned after various assumptions about fuel costs are taken into account.
However, with oil prices falling sharply in the last two months, the original assumptions which informed Mr Reeves's decision appear to have changed.
However, not all of the increase is based on future assumptions: some relate to costs for which the ESB was not compensated in the past.