The high cost of electricity in the Republic is affecting the ability of firms to compete in the international market, a new report from Forfás has found.
According to the agency's 2007 electricity benchmarking study, the Republic has the second-highest prices for industrial electricity within the 25 European Union countries. In January 2007, prices were 18.7 per cent above the average prices charged in the EU-15 (the 15 older member states in the EU).
Security of supply is also putting pressure on firms. Electricity demand in the Republic has risen over the past few years, and grew 4.5 per cent in 2006.
Forfás argues that significant improvements in the performance of existing generating plants, along with the provision of extra capacity, will be required to meet demand.
"While a number of factors that affect electricity prices are outside Ireland's direct control, such as global fuel price volatility, there are a number of areas where Ireland can act to restore cost competitiveness and improve the adequacy of our electricity supply," said Forfás chief executive Martin Cronin. He called for the "full and timely" implementation of the measures proposed in the Government's Energy White Paper, adding this was critical to ensuring that business electricity needs were met.
