Energy prices 'threaten business'

Many businesses struggle to pay their energy bills

Increasing energy prices could force many businesses to close, a delegation from NI Manufacturing has warned assembly members.

The delegation made the comments during a meeting with the enterprise committee on Thursday.

They said the Utility Regulator had publically presented electricity prices and charges which did not reflect the reality experienced by business people.

They also said there was a lack of competition in the NI energy market.

Bryan Gray, of Northern Ireland Manufacturing, said that while the regulator had said electricity prices had gone down, many of his members had experienced price increases of up to 61%.

Wayne McMeekin, of Almac, told the committee that there was no competition in the energy market in Northern Ireland.

He said that of the five energy providers in NI, only three or four would provide a quote for costs when asked. He also said that the quotes he obtained were "remarkably similar".

Agreeing with this, Mr Gray said that the nature of competition in Northern Ireland was not the same as the comparatively healthier energy market in the rest of the United Kingdom.

He said that the fluctuations in the energy market were not being borne by energy providers, who, he said, increased profits despite the fact that the market as a whole was consuming less electricity.

Mr Gray added that many of his members were suggesting they would have to close down if the current pressure from electricity prices continued.

He said that it was no longer a question of company profitability, but of company survival.

Mr McMeekin also questioned the viability of the costs incurred to run the regulators office.

He said £6m was spent on consultation fees to advise on regulating a market which was "essentially uncompetitive from a business person's point of view".

The committee said the presentations they had received from the energy regulator did not reflect the views given by the NI Manufacturing delegation and agreed to investigate the matter further.