ISME: Gas, electricity price rises a step too far

The Irish Small and Medium Enterprises organisation (ISME) has lambasted the decision by the Commissioner for Energy Regulation (CER) to approve a dramatic increase in gas and electricty prices.

The CER approved a rise of 25% for gas and 5.2% for electricity.

The ISME called the decision a disgrace and another nail in the coffin for many businesses - particularly manufacturing.

ISME Chief Executive Mark Fielding said: "With business input costs soaring through the roof, these increases are the last thing the small business sector needs.

"In an effort to stay competitive, small and medium companies do not have the option to pass increased costs on to their customers and therefore have to take the 'hit' on their bottom line.

"As a consequence, energy costs have now replaced Insurance in 'non-labour costs' as 'enemy number one' for small companies,"

"There is now an urgent requirement to provide alternative energy sources that can be used in business instead of relying on services provided by monopolies.

"We now have the second highest electricity prices in Europe. When the regulator came into office we had the second lowest rates."

ISME is calling on the Government to address the cost of electricity and gas and to implement initiatives to increase the usage of energy sources including biofuel, solar and wind energy.