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New electricity levy from energy suppliers comes under fire - 10/08/2010

Consumer groups in Ireland have criticised a new regulation that will see energy suppliers charge a levy on the electricity they provide.

The levy, which would add more than 30 euros (£25) a year to domestic energy bills, came under fire from the Consumers' Association of Ireland, which stressed that the additional charges would hurt customers who are still recovering from the effects of the recession.

Small business group ISME said the charges would also increase the cost of business energy by five per cent and could result in job losses.

However, Michael Tutty, chairman of the Commission for Energy Regulation, maintained that the levy has already been postponed and deferring it any further is no longer an option.

The charges will be used to fund renewable cheap energy projects around the country and recoup the costs incurred by electricity suppliers such as ESB in having to source some of their energy from renewable sources.

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