Description:European energy and climate policies have the potential to deliver commercial opportunities in sustainable energy technologies. This is to be welcomed, but there is a need to mitigate any adverse impacts on energy market prices. Ireland’s reliance on natural gas for flexible backup generation makes us relatively sensitive to international fuel prices. At times this has served to deliver a cost disadvantage, particularly for large electricity users. This reached a crisis point during 2008, prompting a temporary policy intervention by DCENR. While prices are coming closer in line with the EU average, Ireland still rests in the top half of the table in terms of electricity costs.
Implication(s):Inward investment, job creation and employment retention could all be harmed if industrial electricity prices are allowed to become uncompetitive in comparison to other EU Member States for extended periods. There are many good reasons for multinational firms to base their operations within Europe, but uncompetitive energy costs may discourage them from choosing Ireland as the preferred location. Policy makers need to be made aware of the need to maintain cost competitiveness whilst also striving to meet EU-mandated targets on renewables, efficiency and climate mitigation.
Current Position:A number of other Member States have schemes in place or in development to protect the competitiveness of trade and energy intensive industries. Ibec will conduct analysis to underpin our request for a similar mechanism, in line with European Commission Energy and Environment Aid Guidelines, to support large firms. Ibec's Large Energy Users Working Group will continue its efforts to ensure methodology to determine the peak for the Public Service Obligation levy (which resulted in a an increased burden for large energy users) is not putting a greater burden than necessary on industrial consumers. Changes to the electricity market are discussed in the next section.
- Ibec response toPSO CER14_125.pdf - 190 Kbytes
- Letter to Neil Walker Ibec re PSO cost allocation.pdf - 27 Kbytes
- Ibec response to PSO 2015_110.pdf - 176 Kbytes
Phone: +353 1 6051697
Last Updated: 01/18/2016