Lisa Foley: How the electricity market works in Ireland

Cornwall Insight principal consultant Lisa Foley explains the forces affecting the prices we pay, and predicts a short-term fall in prices, but a longer-term rise towards the end of this decade

The wholesale market determines the price suppliers pay for the electricity they buy from generators, making up approximately 75% of consumers' bills. iStock

Electricity consumers in Ireland have experienced significantly higher electricity bills in recent years, due to the wholesale market, which determines the price suppliers pay for the electricity they buy from generators, and which makes up approximately 75% of consumers' bills.

Prices in the wholesale market are determined by market forces and influenced by supply and demand at a specific times, and by the strategies generators and suppliers adopt to protect themselves from volatility.