The price of household electricity will increase by 13.25 per cent from January 2003 following announcements made by the Commission for Energy Regulation (CER) today.
This will result in a €12 increase on an average two-monthly household bill of €90 equating to 22 cents per day.
According to the CER, household electricity has not reflected the true cost of supply for a number of years. The process of moving towards "truly cost reflective tariffs began last year" with a 9 per cent increase on domestic and business electricity bills.
This latest increase for domestic customers means they are closer to reflecting the true cost and closer to the European average.
Price increases on business accounts will also rise between 3.42 and 8.42 per cent.
"The vast majority of business customers experience rises broadly in line with inflation," a CER statement said.
Large businesses face increases between 3.46 to 4.2 per cent, while small to medium businesses will experience increases of up to 8.42 per cent. Smaller establishments including shops and offices will be subjected to a 3.56 per cent increase.
The CER said the ESB had sought a 14.7 per cent average increase, but after the commission's review this was reduced to a 9.8 per cent increase in the price of electricity across the board.
The extra charges will appear on bills from March 2003.