Labour has claimed the proposed 8 per cent increase in electricity charges is being introduced at the "behest of the electricity regulator" to accommodate new entrants into the market.
The Labour Party spokesman on Public Enterprise, Mr Emmet Stagg, said the drive to open the electricity market to competition was the main reason customers faced "price hikes".
"The proposed 8 per cent price hike which consumers will face from October 1st next is being introduced at the behest of electricity regulator Mr Tom Reeves, not the ESB. The electricity regulator has conducted a review of prices in the Irish electricity market. The reason prices will rise by 8 per cent is because potential entrants to the electricity market are refusing to compete and have argued for higher prices."
Mr Stagg said the "mantra of competition" was that it would lead to lower prices and more choice for consumers. "Our experience of a competitive electricity market is exactly the opposite. Domestic consumers have no choice of electricity supplier and are now facing the prospect of higher prices to facilitate competition at the top end of the market. Consumers are right to ask who benefits from competition."
ISME, the Irish Small and Medium Enterprises Association, called on the Minister for Public Enterprise, Ms O'Rourke, to reverse the cross-subsidisation policy to ensure businesses no longer subsidised domestic households.
ISME said it was disappointed the electricity regulator sanctioned increases in electricity prices from October 1st. "These increases are being imposed despite recent indications from the ESB that they did not require an immediate rise."