Mayo businesses in danger of job losses and closure due to energy costs – TD

A Mayo TD has called on the government to take action on sky-high electricity bills and protect the SME sector.

Deputy Rose Conway-Walsh said: “Like many households, businesses have been struggling with unmanageable electricity costs over the past year.

"This has put many in a difficult financial situation that represents a real threat to the economy.

“I have been contacted by business owners in Mayo that have seen their electricity bills skyrocket.

"One business I have spoken to saw their electricity bill go from €18,000 to €43,000 in the space of a year.

“This is completely unsustainable for most businesses out there.

"The government must recognise we are in a situation where sustained high electricity costs could lead to businesses closing and job losses.

“At the same time, we see many electricity companies make record profits.

"This in part is down to the way we price and pay for electricity. In our current system gas sets the price for all electricity generation.

"That is why people have seen their electricity bills go up as much as their gas bills.

“We need to look at ways to decouple gas prices from the overall cost of electricity.

"With roughly half of our electricity coming from renewables we should not be facing such severe increases in electricity prices as a result of high international gas prices.

“This is being debated across Europe. We have already seen Spain and Portugal take action.

"The British government also recently indicated that they may implement reforms to decouple gas and the overall electricity price.

“So far the government has refused to meaningfully engage on this issue despite me raising this on a number of occasions with both the Taoiseach and Minister Eamon Ryan.

"There seems to be no understanding of the risk this poses to businesses, jobs, and the wider economy.

“The government must urgently look at all options for reducing the cost of electricity.

"Many of these companies are only getting back on their feet after a very difficult two years due to Covid.

"Now we need to see pandemic-like urgency from the government in responding to this new challenge.”