This site uses cookies to improve your experience and to provide services and advertising. By continuing to browse, you agree to the use of cookies described in our Cookies Policy. You may change your settings at any time but this may impact on the functionality of the site. To learn more see our Cookies Policy.
#Open journalism No news is bad news

Your contributions will help us continue to deliver the stories that are important to you

Support The Journal
Dublin: 15 °C Sunday 5 July, 2020

One third of SMEs don't understand their energy bills and 86 per cent don't know how to lower them

AIB has announced it will be offering loans aimed at making businesses more energy efficient.

Image: Irina Mos via Shutterstock

ENERGY COSTS ACCOUNT for nine per cent of the overheads of small and medium businesses in Ireland, but one third don’t understand their bills.

The figures are carried in a new AIB-sponsored Amarach Research report on the level of energy efficiency in businesses.

The survey showed that SMEs in the manufacturing area spend, on average, €114,000 on energy bills every year, retailers spend €50,000 and other businesses spend €70,000.

More than 54 per cent of surveyed businesses expect those energy costs to rise over the next three years but few have ideas on how they will respond.

Over half the buildings SMEs operate in are 10-50 years old.

AIB added the survey to the announcement that they will make lending of €100 million available for SMEs to complete energy efficiency projects.

Ray O’Neill, the head of energy at AIB, told that some customers who apply for the loans could receive a 1.25 per cent discount on loans from the European Investment Bank.

He added that the lending was based on the report and that there was “huge potential” for SMEs to cut their spending on energy.

Ken Burke, the head of AIB Business Banking, said that the lending was part of a suite of €1 billion worth of lending the bank was to undertake.

He said that businesses could apply for the loans for an array of projects.

It covers everything from LED lighting, to heating systems and electric vehicles.

“It’s a broad branch. The discounted EIB funding is very significant.

“We’re also allowing payment holidays to match cashflow. So if an SME has heavy energy needs at a particular time, we will match the payments against that.”

Read: Irish challenge against ‘unlawful’ British nuclear plant starts tomorrow

Read: Rabbitte: ‘There must be meaningful engagement with the public over Eirgrid plans’

  • Share on Facebook
  • Email this article

Read next: