Electricity prices set to rise by €41

Regulator says increase will help finance investments by ESB Networks and EirGrid in the network and infrastructure. 

Electricity prices are set to rise by more than €40 after the Commission for Regulation of Utilities (CRU) approved an increase in network charges.

Electricity prices are set to rise by more than €40 after the Commission for Regulation of Utilities (CRU) approved an increase in network charges.

The CRU approved the increases as it looks to help finance investments by ESB Networks and EirGrid in the network and infrastructure. 

Overall, a typical domestic electricity customer is likely to face an increase of €41.25, or €3.44 a month. The increase will come into effect from October 1. 

A statement from the CRU said: "Following its annual review of the network companies’ revenue submissions, the CRU has approved network revenue allowances of €1.582bn for distribution and €1.5bn for transmission that are €138m lower than the combined total of revenues initially proposed by the network companies. 

"The revenue approved by CRU supports ESBN and EirGrid’s ongoing investment to upgrade Ireland’s electricity network and deliver critical new infrastructure to meet demand and will support renewable generation, offshore grid development, and improving security of supply and resilience."

The Public Service Obligation (PSO) Levy has been reduced. The CRU said it has reduced network revenue allowances by €138m. 

'Electricity prices in Ireland are the highest in the EU'

Darragh Cassidy of bonkers.ie said the increase of just over €41 a year follows an increase of around €30 last year and €100 the year before.

"Electricity prices in Ireland are the highest in the EU and are around 70 to 80% above where they were only a few years ago, well above the rate of general inflation. It means the average household is paying over €500 a year more for electricity than it was only a few years ago," said Mr Cassidy.

"Network charges or 'grid fees' now make up around 40 to 45% of the overall price we pay for our electricity in Ireland, which is among the highest in Europe, and there will be further hikes over the coming years. It’s up to individual energy suppliers to decide how they pass on any increase in network charges. They can choose to fully absorb the hike, or pass on only some of it to consumers.

"The Government looks unlikely to pay any universal energy credits again in this year’s budget. So with energy prices likely to remain high, or even increase further, it’s imperative that households switch supplier to ensure they’re on the cheapest tariff possible.

"Today’s decision by the CRU to approve another increase in network charges won’t be welcomed by consumers but it was largely expected as our electricity grid requires billions in investment over the coming years to cope with the demands of a rapidly growing population, an increase in the number of data centres, the electrification of the wider economy, and to help finance the transition towards Net Zero."