Irish MEP Frances Fitzgerald is calling on the EU to create a price shield to protect small businesses against rising energy prices.
EU Energy Ministers are due to meet in Brussels this week in response to the growing crisis.
Former Justice Minister Fitzgerald said she's heard from countless small business owners who are struggling to pay their electricity bills.
"We now know that there is a crisis actually impacting on small businesses across Ireland, indeed across Europe", she said.
"We will lose many many jobs and businesses will close."
Ms Fitzgerald described small businesses as the "backbone of our society" and that the Irish government and the European Union must "take every step" to lessen the impact of the cost of living crisis on them.
"We have to take action on energy prices", she added.
"Otherwise, we will lose many many jobs and businesses will close."
Small business owners
The owner of Westmeath café, who received an electricity bill of €9,836, has said she can't operate like this going forward.
Geraldine Dolan owns Poppyfields Café in Athlone.
She told The Pat Kenny Show that they had just switched providers.
"Our previous bill - which was the 19/4 to the 15/6 - was €2,370, and it went to €9,836."
"This was a temporary rate because we moved from Iberdrola to Electric Ireland, because Iberdrola left the market."
"So we had no choice, we had to move straight to the company that was allocated by the government at the time."
"You could pay a one-off bill, but how do you do this every two months?"
Geraldine said she can't figure out where the cost is coming from.
"We've an all-new refurbished kitchen, so all of our equipment would be very up to date.
"Some of our cooking appliances are actually gas - so I don't know.
"I don't know where we're going to go with this".
Main image shows Frances Fitzgerald. Photo by: Leah Farrell/RollingNews.ie