Anton McNulty
THE latest price hike by the ESB could force some businesses to close, according to the CEO of the Ballina Chamber of Commerce.
Last week, the Commission for Energy Regulation (CER) announced the 17.5 per cent price hike would come into effect from the start of August and warned of another possible increase in the new year. Consumers and business people in Mayo could also face another rise in gas prices after Bord Gáis confirmed it was seeking an increase in price from the regulator, believed in be an increase of between 35 and 40 per cent.
Ms Sandra Cribben, CEO of the Ballina Chamber of Commerce, told The Mayo News that the rising energy costs would have a big impact on small businesses in the county. She said that because of the high energy costs businesses needed to look at alternative energy sources and called on the Government to provide a package for businesses to become more energy-efficient.
“Along with the combination of costs and the cut in people’s spending, it is becoming more difficult for businesses to be profitable. We already have higher energy costs than most countries in the EU and it is going to be difficult for some businesses to cope. It will be up to businesses to become more energy-efficient but, because of the energy crisis, the Government should provide a package to help businesses become energy-efficient. The turnover for many businesses is down and this will add to their difficulties. Will it cause some businesses to close down? I don’t know, but the way things are going this may be a step too far for some,” she said.
The price hike was also criticised by ISME, the Irish Small and Medium Enterprises Association, who called the decision a ‘disgrace’ and another body blow to the business community. Mr Mark Fielding, CEO of ISME said that businesses were already struggling to cope with ever-rising business costs and said the situation rests squarely with the Energy Regulator.
“The current price hike demonstrates quite clearly the influence that the ESB have over the CER, being awarded the exact increase requested without any account taken of incentive regulation and the requirement to increase efficiencies and reduce operating costs. A price increase should only be awarded when all reasonable avenues of cost-cutting have been exhausted and a guarantee given that prices will revert once the fuel costs fall,” he said.
