MNI Welcomes Positive Outcome On Carbon Levy
Manufacturing Northern Ireland has welcomed the news that the Irish Government is to set the Carbon Levy to zero. The Irish Government had introduced a levy on all electricity generators in the South of Ireland pushing up wholesale energy prices across the island by in the region of 0.2p/kWh. This additional revenue – approximately £45m per annum – would have gone to support Large Energy Users in the South and consequently NI companies would have been effectively helping to subsidise lower electricity bills for their ciompetitors in the South. MNI raised the issue with the Northern Ireland Executive, presented their case to the Enterprise Trade and Investment Committee who in turnraised the issue with the Oireachtas Committee, and are delighted to have influenced the final outcome.
Energy Minister Pat Rabitte's office said "The Minister has now decided to end the charging of the carbon revenue levy to mitigate the increased costs the inclusion of the carbon revenue levy has on electricity prices" MNI Chief Executive Bryan Gray said, “As all electricity in Ireland is traded through one big wholesale market, the situation where Northern Ireland consumers would have contributed an additional £17m in 2012 towards the levy would have been anti-competitive and economically farcical. We would like to thank the Enterprise Trade and Investment Committee in particular for taking the issue seriously and raising it with the Oireachtas Committee, and the Department of Enterprise, Trade and Investment for raising the issue with the Irish Government. Energy costs are the major issue for our members, and in particular the major disparity there is in commercial energy costs North and South of the border, however we’re delighted that our efforts to raise the issue have been successful in helping to achieve this positive outcome."