Consumers pay fourth highest electricity prices in EU

Electricity and gas prices have been rising at a much faster rate here than average energy costs across the EU, new figures reveal.

Ireland now has the fourth highest household electricity prices among the 28 European Union member states following an average 5.1% increase in charges in the second half of last year.

In a further sign of rising energy costs for consumers, gas prices in the Republic soared at a rate seven times the EU average in 2013.

Gas charges in Ireland went up by 7.4% last year compared to an average increase of just 1% across the European Union.

Price hikes by all the main electricity suppliers last autumn means the average price of 100 kilowatt hours in Ireland is now €24.10 compared to the EU average of €20.10. UK consumers pay just €18 on average.

Electricity prices in 13 EU member states including Austria, Belgium, Denmark and Spain actually fell or remained static in the same period. Only Denmark, Germany, and Cyprus, have higher electricity charges than Ireland.

The 5.1% jump in Irish electricity prices last year is almost twice the average EU increase of 2.8% and follows an even larger increase of 9.7% in the second half of 2012.

However, the EU survey using another measurement on consumers’ purchasing power indicates Irish electricity prices are more modest in terms of affordability than its fourth most expensive ranking would suggest.

The rise in electricity prices in Ireland is strongly linked to increases in the price of natural gas which accounted for 49% of all electricity generated in 2012.

New figures compiled by the EU show consumer gas prices across the union increased by 1% on average between the second half of 2012 and 2013.

Gas prices in Ireland jumped by 7.4% in the same period following a 8.7% increase the previous year.

The rate of increase in gas charges for Irish consumers was the fourth highest in the EU last year and came at a time when 16 EU member states actually recorded a decrease in the price of household gas.

According to the survey, the latest price hikes means Ireland has the 10th highest gas charges within the EU.

The average cost to Irish consumers of 100 kilowatt hours for gas is €7.20 — just above the EU average of €7.10.

When adjusted for purchasing power comparisons, Irish gas prices are marginally below the EU average.

A reduction in wholesale energy prices so far this year, despite the political unrest between Russia and Ukraine, has raised hopes that there will be no further increase in gas and electricity charges for Irish consumers this year.