RTE today report that despite the 31% fall in oil prices from its peak a couple of months ago, the cost of electricity will not fall in the medium term. The ESB increased electricity prices by 17.5% on 1 August. This is owing to the fact that they hedged the rate at which they buy oil over the summer meaning that despite the fall in oil prices they will still be paying over the odds for the supply.
To me, this smacks of absolute incompetence. Whatever about Michael O'Leary missing the boat on not hedging at 75 dollars a barrel, an eijit could tell you that oil was going to fall from its peak of several months ago. Even the Government were telling us that there was an element of a speculative bubble about current oil prices, regardgless of what they will do in the future.
What should we expect of the leaders of semi state bodies who make such bad decisions?