Business group Ibec has called on Government to deliver further measures to protect the economy from the current "exceptional" energy cost inflation and improve the country's energy security.
In a letter to the Taoiseach, Ibec CEO Danny McCoy said the the Russian invasion of Ukraine has exposed the fragility of Europe's energy system.
The group said it also revealed Europe's over dependence on fossil gas from Russia, and failure to decarbonise and diversify its energy mix since the energy crisis of 2008.
"The invasion has also accelerated energy price inflation, with natural gas and oil prices rising to record levels," Danny McCoy said.
Ibec pointed out that businesses here spend over €3 billion a year on natural gas and electricity and a further €1 billion on road transport fuels.
It said its members are reporting increases in some costs which are multiples of the same time in 2021.
"This will put major pressure on companies' ability to maintain profitability with knock on implications for investment and jobs," it cautioned.
Mr McCoy said Ireland is "acutely" exposed to these cost increases and energy supply challenges because of the increasing dependence on imported gas, low levels of electricity interconnection and a surge in electricity demand.
"Like households, Irish businesses are struggling to adjust to these exceptional price increases, with energy intensive sectors at particular risk. Firms and jobs will be lost if Government doesn’t do more to address this energy crisis," he warned.
Over the next three months, Ibec urged the Government to work with business to provide immediate direct fiscal interventions to help ease the burden of increasing energy costs.
It also urged the Government to develop, along with its EU partners, a common Emergency Aid Framework to support business through this period of volatility and exceptional costs.
Ibec also wants the Diesel Rebate Scheme for Irish hauliers to be revised to keep the sector viable and Irish business competitive, while it also called for work to begin on a new framework to allow the development of new emergency energy storage in Ireland, including back up LNG options.
Meanwhile, before the end of the year Ibec wants the Government to support the development of hydrogen and biogas projects to enhance security of supply, while it also urged it to work with EU partners to use CAP funding to support biogas production in rural areas and promote opportunities in the biogas sector.
It also called for greater resources to the departments and state agencies involved in the planning and licensing of energy projects, including An Bord Pleanála and the Department of Environment, Climate and Communications.
Ibec said the measures will help protect businesses from extreme cost pressures in the short term and build a more secure, sustainable, and competitive energy system in the medium term as the country's transitions to a net zero economy.
