The Irish Business and Employers Confederation (IBEC) in Limerick and the Mid-West has expressed serious concern at the economic challenges posed by rapidly rising electricity and gas costs, which have been sanctioned by the Commission for Energy Regulation (CER).  

IBEC proposes that substantial support mechanisms must be made available to support investment in energy efficient equipment and that energy efficiency is the most cost effective way of reducing energy demand and bills.

“The Commission for Energy Regulation’s (CER) interim announcement can only add to the overall cost of doing business and undermine competitiveness. The rise comes at a time when the Mid-West is already facing a significant setback to employment with up to 1500 redundancies since the beginning of the year. Rapidly rising energy costs puts a further intolerable strain on businesses in the region,” said IBEC Director, Mid-West, Chris O’Donovan.

IBEC however, added that the capital costs of investing in equipment that is more efficient can be prohibitive.

While the establishment of an energy efficiency capital allowance scheme in Budget 2008 was welcome, the scope of products covered was very limited, Mr O’Donovan said.

“Given the current uncertain economic climate, IBEC is disappointed by the CERs lack of inclusive consultation and the phasing of a proposed introduction of a 17.5% price increase in electricity in just three weeks time,” Mr O’Donovan said.

According to IBEC, the Government must fund energy infrastructure of strategic national importance via the National Development Plan (NDP) 2007-2013.

The business group stated that an estimated spend of €15bn is required in the electricity and gas transport infrastructure in 2020.

“Ireland must diversify fuel sources–Ireland’s dependence on imported fossil fuels significantly exposes us to volatility of international fuel prices. Ireland must urgently look to diversify fuel, harnessing indigenous energy, including wind, biomass and wave/tidal. Developing these options will increase economic performance, create jobs in new sectors and reduce dependence on fuel imports,” the group said in a statement.

IBEC added that the Corrib gas field must be completed urgently–Fossil fuels, particularly gas, will continue to play an important role in Ireland’s fuel mix. As such every effort must be made to ensure the urgent completion of this project reducing import dependence, the group said.

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