NORTHERN BUSINESS: The disparity in electricity prices between Northern Ireland and the rest of the UK is undermining the future prosperity of the region, according to local businesses.

A survey of the business community in Northern Ireland has revealed that 95 per cent of directors are concerned about the issue of electricity prices. The majority - some 64 per cent - believe Northern Ireland's businesses are at a major competitive disadvantage compared with their counterparts in the rest of the UK, affecting inward investment, industrial expansion and employment prospects.

The survey of 100 directors in Northern Ireland was carried out by Mori and commissioned by the Royal Bank of Canada, which has extensive experience in devising financial solutions for the delivery of essential services such as electricity and water provision in Canada, the US and the UK. The company is understood to be interested in seeing if these financial models are applicable to electricity provision in Northern Ireland.

In the context of future economic prosperity, those polled considered low energy prices as the most important of five factors, with the exception of the adequate supply of skilled labour.

A total of 69 per cent of directors rated low energy prices as very important compared with 70 per cent who rated an adequate supply of skilled labour as very important. The overwhelming majority of those polled said increased competitiveness in electricity prices would help to develop Northern Ireland's economy further.

Ninety-five per cent agreed that lower electricity prices would reduce the cost of living, and help preserve and stimulate the manufacturing industry in the province. A common view was that employment prospects and inward investment would increase as a natural follow-on from a reduction in electricity prices, the survey said.

Just one in four business leaders think Northern Ireland derived any benefit from the fall of 34.7 per cent throughout the UK in industrial electricity prices over the past 10 years, while 94 per cent were aware that prices were much higher than the UK average.

On the question of who is to blame for electricity prices, 43 per cent blamed the British government, 26 per cent blamed Northern Ireland Electricity and 16 per cent blamed "the electricity generators". Just 3 per cent blamed OFREG, the regulatory office.