Dairy farmers will be “grossly affected” by a proposed energy tariff at peak electricity consumption times, a member of the Seanad has warned.
The Commission for the Regulation of Utilities (CRU) is proposing to introduce a tariff or surcharge later in the year for the peak times of 5:00p.m to 7:00p.m – coinciding with milking time on most dairy farms.
The apparent aim of the tariff is to encourage energy consumers to reduce their electricity consumption and therefore the demand on the national grid.
The proposed tariff came up for discussion at the Oireachtas Committee on Environment and Climate Action on Tuesday (August 30).
Speaking to Agriland after the committee meeting, Senator Tim Lombard said: “The topic of energy security was discussed at length. We were informed that 5:00a.m to 7:00p.m is peak time for energy supply and a proposed tariff will probably be introduced for all customers.
“This is to encourage people to not use energy during peak time. [The tariff] would be 5% for residential users and 12% for commercial users,” Lombard explained.
The senator stressed: “The dairy industry will be grossly affected by this. The majority of milking is done between 5:00p.m and 7:00p.m.
“They do not have the ability to change there farming activity at this time of day. To put an extra charge on this activity would be totally inappropriate.”
Lombard called on the CRU to revisit its plans to introduce this tariff.
“There was no consideration given to the farming community when they were drawing up these proposals. To say that it is illogical is an understatement,” he added.
Speaking at the committee, commissioner of the CRU Jim Gannon said that these tariffs will see a rise for all customers, though they will be weighted more towards the very large energy use sector.
He said that the increase for those in the domestic sector will be smaller, while also noting that some dairy farmers are not operating off a domestic, residential electricity supply.