W2C-008 Business Telegraph-0.txt
'Privatisation hikes energy costs' Maurice Neill

A senior industrialist today attacked rising energy costs and blamed the privatisation of Northern Ireland Electricity.

Michael McVeigh, works director of the 25-year-old Hoechst chemical plant in Limavady, said the price of power has put new pressure on vulnerable companies.

The German-based Hoechst reported a massive loss last week and warned of a new round of international cost cutting.

Neighbouring Du Pont in Londonderry has already trimmed its workforce as recession sweeps the European chemical giants.

"We are struggling to maintain profitability in the middle of a deep recession and yet face a rise in energy costs of as much as 17pc," said Michael McVeigh.

"This kind of increase is simply unacceptable," he added.

The plant, one of the province's 20 largest energy consumers, employs 320 producing polyester yarns mainly for the European clothing industry. It pays a power bill of around £ 1.25 m a year.

The Confederation of British Industry here warned Government Northern Ireland already has some of the highest energy costs in Europe but failed to win any safety guarantees pre-privatisation.

Frank Irvine NIE energy marketing manager said: "Excluding rises in fuel costs electricity prices in 1994/95 are expected to rise in line with inflation."
