Employers' body IBEC warned today that the liberalisation of the Irish energy market is not working as energy prices are set to increase sharply .
IBEC's comments come in the week the energy regulator Mr Tom Reeves is expected to confirm an earlier draft decision to grant the ESB an 8 per cent rise due to the escalating cost of oil and other fossil fuels.
The ESB is also looking for an additional 4.5 per cent to kick in from January, but it is unlikely Mr Reeves will make a decision on this next week.
IBEC points out that this is the fourth year in a row in which there has been dramatic increases in electricity and gas costs, significantly above the rate of inflation.
IBEC said the price increases would widen the competitiveness gap between Irish industry and its European competitors.
In addition to the price increases, the Commission for Energy Regulation is proposing to introduce a "fuel variation" clause on all electricity bills, allowing further price rise if oil prices continue their upward path.
Since liberalisation, the energy sector has seen limited new entry into power generation and limited competition among energy suppliers, leading to higher prices, IBEC said.
"It is imperative that the CER, which has the power to manage and shape energy tariffs, does so in a way that promotes competitiveness and private sector job creation," IBEC said.