The rise in the price of electricity comes at the worst possible time, politicians and business said this evening.
The Chambers of Commerce of Ireland (CCI) said the costs for businesses were already leading to cut backs and both Labour and Sinn Fein were suspicious that the price rises were a precursor for the privatisation of the semi-State body.
CCI chief executive Mr John Dunne said the price-rise for business was more acute for small and medium-size enterprises who are struggling with rising costs, particularly insurance and wages.
"The 8.42 per cent rise in electricity prices for SMEs comes at a time when many of these firms are struggling with rising business costs," he said.
He called for "drastic measures" to tackle the rise in costs for business: "The stark reality is that many businesses are now having to cut back, lay off staff and some are even facing closure as a result of spiraling costs," he said.
Sinn Féin spokesperson on Communications and Transport, Mr Seán Crowe, described the 13.25 per cent hike as "regrettable and excessive in the current climate of spiralling increases in prices across a range of goods and services in the last six to 12 months".
The Labour Party Spokesperson on Communications and Natural Resources, Mr Eamon Gilmore, said the new charges were "a further imposition on families already reeling from a whole spate of price increases".
"Since the general election families have been hit with a range of increases on drug costs, accident and emergency charges, VHI charges, third level registration fees - not to mention the range of consumer goods and services that continue to rise all the time," he said.
He also echoed Mr Crowe's concern that the rise is in preparation for privatisation.
Mr Crowe said: "I would have major concerns that the 13 per cent increase for domestic users is more about 'fattening the pig for market' rather than staving off any perceived threat to it's economic viability".
Both TDs expressed concern about the effect the price-rise would have on inflation, .
Mr Gilmore said: "This range of price increases can only accelerate the rate of inflation, which will in turn lead to demands for further wage increases".