Electricity in Ireland among EU's most costly

EU: Ireland has the third-highest electricity prices for domestic users and the second-highest for industrial users in the European…

EU:Ireland has the third-highest electricity prices for domestic users and the second-highest for industrial users in the European Union.

According to a range of figures and reports published yesterday by the European Commission, Ireland was one of the most-dependant countries in the EU on energy imports, and had one of the highest per capita emissions of greenhouse gases and one of the lowest levels of energy intensity.

The commission reports have called for a series of reforms of the EU energy market aimed at improving competition, increasing renewable energy sources and massive increasing investment in energy production.

Last October, the Government pre-empted the commission's work with the publication of a Green Paper on energy, which proposed a series of reforms of the energy market, with a target of increasing renewable energy to 30 per cent by 2020.

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In relation to Ireland, the commission yesterday highlighted the fact that electricity prices for domestic users now stand at 19 per cent above the EU average, and are the third-highest after Italy and Germany.

Average industrial prices stand at 32 per cent above the EU average, the highest after Cyprus.

The report on the internal energy market in Ireland reiterated that the dominance of the ESB was working against new market entrants and this was the "key issue" that needed to be addressed in ensuring competitive electricity and energy prices for Irish consumers and industry.

The EU research also highlighted Ireland's dependance on oil. Fifty nine per cent of our primary energy supply is derived from oil, while just 2 per cent comes from renewable sources.

Transport also emerges as the main source of energy consumption, accounting for 39 per cent of all fuels used in the State.

The commission highlighted the high oil-dependence of the Irish economy, and the "difficulties in meeting Kyoto emission targets" as primary energy issues facing the country. It found that 10.6 tonnes of carbon dioxide are produced annually for every person living in Ireland. This compares with an EU average of 8.2.

The EU energy and climate change proposals led to calls for a series of measures to be implemented in Ireland in order to prepare for the new targets being set by the European Commission.

Fine Gael environment spokesman Fergus O'Dowd said tough new targets needed to be set on increasing renewable energy and reducing reliance on fossil fuels.

"The European Commission strategy makes it clear the next Irish Government will have to implement aggressive policies that greatly increase our use of alternative energy and reduce our greenhouse gas emissions," he said.

Labour energy spokesman Tommy Broughan claimed the current energy strategy would "not be sustainable or effective in the medium to long term and that a much-strengthened policy on energy is necessary".