GOVERNMENT proposals for liberalising the electricity market have been criticised by IBEC, the employers' lobby group, for not going far enough.

It has also warned that the electricity prices must be low, relative to international rates, if Irish business is to maintain its competitiveness.

IBEC said large electricity users were concerned that current proposals for restructuring the industry will introduce limited side competition, based on the so-called "single buyer model".

IBEC says this model establishes a Power Procurement Office through which all electricity either produced in Ireland or imported will be purchased.. The single buyer will thus hold a monopoly on electricity, it said.

A delegation from IBEC made a submission outlining these points to the Dail Committee on Commercial State-Sponsored Bodies.