IBEC warn of power blackouts

IRELAND faces power blackouts if the Government fails to put a clear energy policy in place, employers group IBEC said yesterday.

The group said the current model for deregulating Ireland's power market had failed to deliver lower energy costs and had resulted in a situation where power supplies could no longer be guaranteed. "What we have so far is the worst of all worlds: rapidly rising costs and insufficient generating capacity," said IBEC director of enterprise Brendan Butler. Mr Butler said the electricity market was undergoing significant change, but the Government need to give it "urgent attention" to prevent power shortages and blackouts.

Under current plans to liberalise the power market, the state-backed ESB can no longer build generating plants. However, government plans to attract private sector operators have enjoyed limited success, as the pace of deregulation has been slower than new entrants would have liked.