ENERGY SUPPLIERS are to meet the Minister for Energy later this week to discuss the prices paid by large companies for electricity in an attempt to reduce the cost bases of some of the State’s largest employers.
Eamon Ryan is to enter into a series of “frank discussions” with the providers to examine if energy prices for large companies can be reduced to support enterprise and maintain employment levels.
“I hope these discussions will be useful for all of us,” Mr Ryan said.
“I know that both Government and business would be of like mind in looking to keep enterprise and employment here in Ireland.”
The energy companies are expected to meet Mr Ryan separately to discuss the prices they charge for electricity to some of the largest companies in Ireland.
It is understood that representatives of Airtricity, Energia, and ESB Independent Energy will participate in discussions at the Department for Communications, Energy and Natural Resources.
The meetings will focus on the cost bases of large companies, what the energy suppliers are currently doing in relation to electricity pricing for large customers, and what more they could do to help businesses operate in a difficult economic climate.
The discussions come following a number of announcements by large employers in recent months that they intend to end or curtail their operations in Ireland because of the high cost of doing business in the State.
The large energy user market in Ireland was the first to become properly competitive, and there was greater downward pressure on prices in that market because of competition between suppliers.
The energy prices paid by large industries in Ireland fall outside those set by the Commission for Energy Regulation and the industries are entitled to make arrangements with suppliers that best suit their needs.
“These discussions will help the Government in its ongoing work to maintain competitiveness and the companies in maintaining their customer base,” Mr Ryan said. “It is in all our interests to work to secure the economy.”
Richard Douthwaite, an economist with the Foundation for the Economics of Sustainability, said there is an increasing amount of competition within the energy sector, but he was unsure if the talks could help lower prices.
“The Government would only be able to do anything to reduce prices if there was insufficient competition in the market and you had a group of companies that were operating like a cartel,” Mr Douthwaite said.
“There is very little the Minister can do as far as the energy companies are concerned because we have to assume that there is proper competition among them.”
Mr Douthwaite said the Government would not be allowed to offer subsidies to encourage large companies to stay in Ireland as it would fall foul of European Union competition law.
