IEA Submission: Review of the Security of Energy Supply of Ireland’s Electricity and Natural Gas Systems

The Irish Exporters Association recognises the significant risk to Ireland’s electricity supply over the coming years, driven by increased demand, the closure of large electricity generation units and the impact of Russia’s invasion of Ukraine which has had an impact on the supply and price of gas and the resultant increase in electricity prices. The IEA recognises the imperative to move towards a more sustainable economic model and supports the need to conserve energy where possible, but affordability is rapidly emerging as the major challenge for exporters and all businesses in Ireland.  Affordability and the potential knock-on effects on both company insolvencies and the labour market are topmost in our members minds.

Energy costs are now posing a significant threat to the viability of many businesses. The current trajectory of energy regulation policy may only increase costs onto already struggling companies. The IEA welcome plans by the European Commission to intervene in the EU energy market by decoupling gas and electricity costs but exporting companies will not be able to bear the brunt of any increase in the price of electricity. IEA members had already been struggling with the inflationary pressures associated with a two year long supply chain squeeze, some have already had to implement temporary production closures because of the spiralling costs of electricity and any further surge in energy costs may make some businesses untenable, putting many jobs at risk.