Sir - Last week there appeared a new economic phenomenon which has yet to be named. It was contained in IBEC's interpretation of its own report on the de-regulation of the electricity market. IBEC argued (both on Morning Ireland, July 17th and at its press conference on the same day) that more competition in the energy supply sector would increase prices and even lead to a scarcity of supply. If true, this would confuse competitive business as to why the prices and margins are declining in the face of increased competition!
The logic of the IBEC theory is that the government should limit competitive forces. Surely, when an organisation proposes daft arguments, these should be exposed for what they are.
Currently, Irish-owned small and medium enterprises pay among the highest prices for energy supply in the EU. Only by opening up the Irish market to the competition will the ESB be forced to radically alter its monopolistic and inefficient practices. - Yours, etc,.
Frank Mulcahy, chief executive
Irish Small and Medium Enterprises Association, Dublin 2