The Cost of Business Advisory Forum has identified energy as the principal contributor to rising costs for enterprises and has issued a final report containing 63 recommendations aimed at improving competitiveness and cutting non‑pay costs.
Key proposal: support for large energy users
Among the measures flagged, the forum recommended that Government consider the feasibility of a new scheme to reduce prices for large energy‑intensive business users. The proposal would target firms for which electricity and other energy inputs are a material share of operating expenses and could alter the competitiveness profile of manufacturing and heavy industry.
The report also emphasised the need for improved price transparency and easier switching for non‑domestic customers, measures designed to give businesses greater control over one of their largest and most volatile cost lines.
Comprehensive review of non‑pay cost drivers
The forum convened representatives from business bodies, social partners, regulators, State agencies and Government departments to examine a broad set of non‑pay cost drivers affecting enterprise. These included:
- energy
- insurance
- legal services
- water and wastewater services
- infrastructure and planning
- tax administration and regulatory compliance
- banking and financial services
Its final report calls for targeted regulatory reform and the removal of administrative and procedural bottlenecks that raise the cost and complexity of doing business.
Banking competition and borrowing costs
The forum highlighted limited competition in business banking as a key factor driving high borrowing costs for firms. Improving market structure and lowering the price of credit were presented as complementary levers to reduce the overall cost burden on businesses.
| Area examined | Objective |
|---|---|
| Energy | Reduce costs for large users; improve price transparency and switching |
| Regulatory compliance | Remove bottlenecks and streamline processes |
| Banking | Boost competition to lower borrowing costs |
Government response and industry reaction
Minister for Enterprise, Tourism and Employment Peter Burke described the report as an important contribution to understanding the challenges facing enterprises and said the Government would give the recommendations careful consideration and issue a formal response in due course, according to the forum's documentation.
“I hope this final report serves as a catalyst for meaningful action to reduce the cost and complexity of doing business,”
The forum chair Kevin Foley is quoted in the report as saying stakeholder inputs were crucial in identifying the issues confronting businesses and expressing hope the report would encourage investment, innovation and sustainable growth.
Chartered Accountants Ireland welcomed the recommendations, with its Director of Members and Advocacy calling them practical and urging swift implementation in order to relieve pressure on firms and improve competitiveness.
What this means for businesses and households
Energy costs are a direct line item on company profit and loss accounts, but they also feed into prices paid by households through higher bills and costlier goods. Any scheme that reduces energy prices for large industrial users could alter input costs for sectors that supply domestic markets, potentially easing inflationary pressure. Conversely, the design of such schemes matters: subsidies or preferential rates may improve industrial competitiveness but could create distributional issues or fiscal costs if not carefully targeted.
Greater transparency and switching for non‑domestic customers would give firms more bargaining power and the ability to manage energy procurement actively, which can have immediate effects on margins—particularly for small and medium enterprises with tight cash flows.
The forum's broad suite of recommendations signals a recognition that tackling business costs requires cross‑cutting measures—regulatory, infrastructural and market based—not a single policy fix. The Government’s forthcoming formal response will determine which recommendations move from paper into policy and what they will mean for jobs, investment and household budgets in the months ahead.
WE NEWS does not provide financial advice.
