Ibec, the group that represents Irish business, has today released a survey of members which shows that average gas and electricity prices increased by 90% and 60% respectively in 2022 with further increases expected next year.
The research was conducted in October 2022 and surveyed 384 companies across a wide sample of business sectors. The data shows that average business expenditure on gas increased by 90% on 2021 levels while average business expenditure on electricity increased by 60% on 2021 levels.
Firms are forecasting gas costs to be three times higher in 2023 than last year and electricity costs to be 2.5 times higher in 2023 than last year. Furthermore, 70% of respondents are forecasting reduced profitability for 2022 because of energy costs and 49% of respondents plan to invest in renewables in 2023 to reduce energy costs.
Speaking about the findings, Ibec’s Senior Executive for Infrastructure, Energy and Climate Policy, Conor Minogue said, "Energy costs increased for all sectors in 2022 eroding profitability and threatening business viability. The research also shows that business exposure to high energy costs will continue into 2023 as more and more businesses exit contracts and lose pre-crisis hedging arrangements."
He added, "Businesses are forecasting gas prices to be three times higher in 2023 than last year and electricity costs 2.5 times higher. While wholesale gas prices have fallen from the exceptional heights we saw in August, the market remains volatile and prices still remain well above normal levels."