Tuesday, 3rd March 2009                                          

Hoteliers Demand 20% Reduction in Energy Prices
Hoteliers Welcome Discounts Announced by Bord Gáis, Airtricity and Energia

An immediate reduction of 20% in energy costs is required to assist businesses pull through the economic downturn, states John Power, Chief Executive, Irish Hotels Federation (IHF) addressing delegates at the IHF’s 71st Annual Conference in Killarney today. While the IHF welcomes recent announcements on the introduction of greater competition within Ireland’s domestic energy market, it calls on the Government to take a more active role in reducing energy prices by making the necessary regulatory changes to mandate 20% cuts in the tariffs charged by the ESB and Bord Gáis.

Mr Power states, “With businesses throughout the country in economic survival mode, the State has a responsibility to show leadership and assist in creating conditions to support industry and generate an economic recovery. We are calling on the Government to empower the Commission for Energy Regulation to reduce prices charged by both the ESB and Bord Gáis by 20% across the board. It is untenable that Irish business continue to be burdened with some of the highest energy prices in Europe. Reductions in wholesale fuel costs, which have plummeted across the globe, must now be reflected in the prices charged to businesses and households.”

            “It defies logic that the Government has not intervened to resolve this issue. Priority must be given to providing energy at the lowest possible cost to assist Irish businesses regain competitiveness. Ensuring national competitiveness must be a priority, and the major reductions in international prices for oil and gas must be immediately reflected in the prices charged by the ESB, Bord Gáis and other energy providers,” Mr Power continues.

The IHF states that it welcomes the decision by Bord Gáis and Airtricity to enter the domestic electricity market and challenge the ESB’s stranglehold on the Irish market through increased competition and lower prices. It states that the commitment by the two companies to guarantee minimum savings of 10% on prices currently charged by the ESB will introduce substantial downward pressures on prices throughout the market. The IHF also welcomes the plans by independent operator Energia to provide natural gas to small and medium businesses at discounts of 10% on prices charged by Bord Gáis.

            “The entry of additional energy suppliers into the market is a very positive development as increased competition can only serve to force further price reductions across the sector. Over the coming weeks, the IHF will work closely with hotels and guesthouses to take full advantage of discounts provided by new suppliers of electricity and gas. This will offer significant benefits to business within the hospitality sector, which spends approximately €150m on energy, representing over 10% of operating costs of most hotels and guesthouses,” he concludes.

FOR INFORMATION:
Siobhan Molloy / Eoin Quinn              Press office:  064 66 38443.
Dublin office:            01 6760168
Weber Shandwick                              Mobile: 086 817 5066 / 087 233 2191

*The Irish Hotels Federation represents almost 1,000 hotels and guesthouses throughout the country, which in turn employ 58,500 people.