Electricity bills could increase by €1.75 a month to allow €18.9bn investment in grid

Estimated impact on a typical domestic customer’s network charges is about €12 per year on average, according to utilities regulator

The changes are due to come into effect from January 1 and continue through to the end of 2030.

Household electricity prices could increase by €1.75 a month after the Commission for Regulation of Utilities (CRU) published its latest price review, which would see €18.9bn generated for investment in the grid.

According to the CRU’s Final Determination for Price Review Six (PR6), the estimated impact on a typical domestic customer’s network charges is about €12 per year on average, increasing to up to €21 per year if the higher investment case is realised.

The price review provides an initial baseline investment allowance of €13.8bn across Ireland’s electricity transmission, distribution and offshore networks.

However, the CRU said through the introduction of an “Agile Investment and Monitoring Framework”, the final determination also allows for investment to increase to an estimated €18.9bn during PR6, “where additional funding is justified and required to meet emerging system needs that will benefit all consumers”.

These changes are due to come into effect from January 1 and continue through to the end of 2030.

The CRU said this investment package “will support the expansion and reinforcement of the electricity networks to enable renewable generation, offshore wind development, electrification of heat and transport, increased housing connections, and improved network resilience in response to climate change and severe weather events”.

“It also underpins continued improvements in system reliability, customer service and digital capability, while placing strong emphasis on efficiency, accountability and value for money.” 

The announcement was welcomed by ESB Networks, which called it the “largest investment in the electricity network in Ireland’s history and will involve the delivery of more than 500 major capital projects which will allow Ireland to meet the increasing demand for electricity”.

ESB Networks managing director Nicholas Tarrant said the final determination endorses the “scale of ambition put forward by ESB Networks in our PR6 business plan”.

“It will help pave the way for a more resilient, reliable and sustainable energy future for Ireland, supporting housing, jobs and climate action.”