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IBEC has expressed serious concern at the economic challenges
posed by rapidly rising energy costs.
Danny McCoy, IBEC Director of Policy, said - “The CER’s interim
announcement can only add to the overall cost of doing business
in Ireland and undermine competitiveness. Given the current
uncertain economic climate, IBEC is disappointed by the CER’s
lack of inclusive consultation and the phasing of a proposed
introduction of a 17.5% price increase in electricity in just
three weeks time (Click
Here).
“IBEC acknowledges that energy prices will inevitably rise
to reflect current international fuel price increases and
welcomes moves by the ESB and CER to explore options to mitigate
the price impact for consumers. Nevertheless, we would call
on Government and the Regulator to ensure the level of price
change does not impact our relative competitiveness internationally"
- concluded Mr McCoy.
Specific IBEC proposals include -
- Supports for Energy Efficiency
Substantial support mechanisms must be made available to
support investment in energy-efficient equipment. Energy
efficiency is the most cost-effective way of reducing energy
demand and bills. However, 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.
- Market Competition
Deliver meaningful competition in Ireland’s electricity
and gas markets.
- Infrastructure
Government must fund energy infrastructure of strategic
national importance via the NDP 2007-2013. An estimated
spend of €15bn is required in the electricity and gas transport
infrastructure in 2020.
Funding this investment via consumer tariffs will
further increase bills. As infrastructure of national importance
IBEC calls on the Government to fund energy transmission
networks via the NDP 2007-2013.
- Fuel Diversification
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.
- Corrib Gas
The Corrib 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.
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