Power Cost Hike Hits Competitiveness

Larger companies involved in manufacturing across NI have said that rising electricity prices will have a massive impact and will further slow any recovery from the recession.

Speaking in response to this week's announcement of an 18.6% rise in electricity costs, Manufacturing Northern Ireland (MNI) Chief Executive Bryan Gray (pictured) said the news is a "disaster for the manufacturing sector".

"MNI have warned that these increases have the potential to cost jobs and hinder recovery as companies struggle to get out of recession.

"Recently MNI provided evidence once again that large energy users in Northern Ireland are paying a premium of as much as 30% more than their counterparts in the Irish Republic.

"This disparity will now only increase. If industry in Northern Ireland is to remain competitive in difficult world markets, this ludicrous and unacceptable situation needs to be tackled urgently," he said, adding that MNI has called on the Assembly to take this issue seriously and address energy costs as a matter of urgency.

"Energy is the third highest cost faced by manufacturers, behind raw materials and labour.

"If the present campaign to ensure that Corporation Tax is lowered is to succeed in attracting new companies to Northern Ireland, it is vital that we tackle the major issue of energy costs which are seriously hampering recovery and will lead to further job losses.

"If we don't get this situation under control, companies which are planning to come here because of the lower Corporation Tax will be diverted from making that decision because of the high energy costs," he said, on Thursday.

See: Shock Rise In Electricity Bills Condemned

(BMcC/KMcA)