The energy bill faced by Irish business has soared by €1 billion in just three years, it was claimed today.
New research from Ibec found the energy costs of Irish businesses have increased from €3 billion in 2003 to €4 billion in 2006 — an rise of over 30 per cent.
Ibec attributed this an increase of 50 per cent in gas prices, a rise in electricity costs of 25 per cent and diesel oil soaring by 40 per cent since 2003. Kathryn Raleigh from ICT Ireland, the association which represents the high tech employers within Ibec, said domestic service providers could pass the costs on to customers but that was not an option for companies which trade internationally.
"The cost of doing business has increased dramatically in the last few years and will be made worse by recent energy price hikes. The government has failed to come forward with any meaningful plan to deal with the problem.
"Industry has been waiting for years for the government to publish a comprehensive energy strategy, and is still waiting," Ms Raleigh said.
The major high technology employers said rising inflation and soaring costs could lead to difficulty in the years ahead unless swift action was taken.
Ms Raleigh called on the government to show leadership and take urgent action to address Ireland's acute energy problems. She said a National Energy Policy must be drawn up and real competition introduced among the energy providers.
Ibec said the government should ensure a provision for a special industry fund to promote energy efficiency was introduced in the next Budget. "With cost rising at such a rate, we run the risk of eroding our competitive position and losing our attractiveness as a location of choice for mobile investment.
"According to an Ibec Business Costs survey in April this year, overall non pay business costs for the high tech sector increased by over 12 per cent between 2003 and 2005. The most recent increases announced by Bord Gas and the ESB, which will result in gas and electricity prices going up by 30 per cent and 20 per cent respectively," she said.
"Almost 92,000 people are employed in the IT sector, which had a turnover of €52 billion in 2004.
"Recent investment announcements are encouraging, but we cannot afford to be complacent. There are many global locations that benefit from a much lower cost base, and cost factors are constantly review by global head offices."