5th August 2010

HOTELIERS OUTRAGED AT ADDITIONAL ELECTRICITY PRICE LEVIES

Proposed Levies Will Cost Individual Hotels up to €7,000 per Annum

The Irish Hotels Federation (IHF) today rejected as outrageous the decision by the Commission on Energy Regulation (CER)* to impose an additional levy on electricity customers from the 1st October. The IHF is demanding that the Government show leadership and intervene to overturn the decision, which could result in additional costs of up to €7,000 per annum being imposed on individual hotels – many of which are already in survival mode.

Mr Paul Gallagher, President of the IHF states, “Our members are outraged by the Commission’s decision to impose an additional levy at a time when businesses are facing perilous economic conditions and struggling to survive. This decision is short-sighted in the extreme and shows an astonishing disregard for the economic realities faced by businesses on the ground. We are calling on Minister Eamon Ryan to personally intervene and defer the levies as there is currently no capacity for businesses to absorb additional costs.”

Mr Gallagher states that the additional Public Sector Obligation (PSO) levy will further exacerbate difficult trading conditions for businesses and, as such, is entirely out of step with the need to support business and restore international cost competitiveness. He states, “We are very concerned about future levels of the PSO levy and are calling for a fundamental review of the scope and burden of the PSO, including the projected burden in the coming years. The danger is that there will be continuous increases in the future.”

*The Commission on Energy Regulation’s Decision Paper on the Public Service Obligation (PSO) levy for 2010/11 can be accessed by clicking HERE

ENDS

FOR INFORMATION:

Eoin Quinn                                                     Tel: 01 6760168

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