Competitive Disadvantage for Fermanagh Manufacturer
A significant manufacturing employer in Fermanagh has been placed at an unintended competitive disadvantage by a Great Britain (GB) electricity cost-cutting scheme, a senior civil servant has informed Members of the Legislative Assembly (MLAs).
Encirc, which employs hundreds of people at its glass bottle manufacturing facility located in Derrylin, County Fermanagh, operates alongside a sister plant in Elton, situated in the northwest of England.
The Elton plant benefits from a UK government subsidy scheme designed to reduce costs for the most energy-intensive business users in GB. However, Northern Ireland participates in an all-Ireland electricity market rather than the UK market, meaning the subsidy scheme is not accessible to the Derrylin factory.
Details from Energy Policy Official
Richard Rodgers, the official responsible for energy policy, addressed the economy committee, stating that the Fermanagh operation is now less competitive due to this disparity.
He elaborated that the GB scheme is funded by adding charges to household electricity bills, which complicates the possibility of implementing a similar subsidy in Northern Ireland.
"It is not clear to me how we would provide a subsidy in line with what's happening across the water with affecting the level of fuel poverty here.
"That's the balance we are trying to find."
Rodgers further cautioned that from April next year, the GB scheme will be extended to include a broader range of companies, potentially increasing the competitive disadvantage faced by Northern Ireland manufacturers.
Government Engagement and Industry Concerns
Rodgers noted that Economy Minister Caomihe Archibald recently met with large energy users for "an open and honest discussion" regarding possible solutions and has also raised the issue with her UK counterpart.
"We need to collaborate, we need to work to protect our industry because we know from the example of other industry that has left that when it goes it doesn't come back," he added.
Encirc is part of the Spanish manufacturing conglomerate, the Vidrala Group. Last month, the group announced profits of €220 million (£191 million) on sales just under €1.5 billion (£1.3 billion).
Sean Murphy, who manages the Encirc operation, commented at that time that 2025 had been "a year of real challenge, with market pressures and changes in government policy creating difficult trading conditions across the UK."
"We acted quickly and decisively, taking tough decisions to protect our competitiveness and ensure we remain positioned for future success."
