Irish hoteliers hit out at 'outrageous' energy costs
Monday November 10 2008
THE Irish Hotels Federation (IHF) yesterday slated the proposed gas and electricity price rises as outrageous and warned that no increase will be acceptable to its members.
The federation will give a submission at an open forum on energy prices hosted by the Commission for Energy Regulation (CER) in Dublin today.
The forum, scheduled to take place this morning in Dublin's Gresham Hotel, was called by the CER to allow the public to air their views on applications from Bord Gais and the ESB for a second round of price increases. Consumers face a possible 4.2pc rise in gas and 5.8pc hike in electricity prices from January 1 and the ESB wants a 3.9pc rise for business customers, while Bord Gais is looking for a 2.8pc increase from its business customers.
A decision on the final size of the proposed increases will be made later this month and published by CER on December 1.
The IHF yesterday condemned the proposed price increases as "outrageous and blatantly insulting to Irish industry in its present economic state". It said following the interim rises granted from September 1 by the CER, the latest price rises would mean actual increases of 25.6pc and 23.4pc being granted for electricity and gas for 2009. The IHF said the hospitality sector spends approximately €150m on energy, representing over 10pc of operating costs of most hotels each year.
Intervention
"The ESB and Bord Gais can not be allowed to function as if their costs and revenues are insulated from Irish economic reality," the IHF said, adding that State intervention is now required.
"The IHF maintains that all businesses and individuals are in economic survival mode and that the State has a responsibility to show leadership and to assist in the creation of conditions to support industry and generate an economic recovery."
- Pat Boyle
