2 days ago
Upgrade of power system could spark €83 yearly increase in household electricity bills
Household electricity bills could increase by €83 per year to pay for an 'essential' upgrade of the country's power system, the chief executive of the Electricity Association of Ireland (EAI) has said.
Dara Lynott said ESB Networks estimates it will need between €10 billion and €13.4 billion to upgrade the system over the next five years.
ESB Networks has asked the Commission for Regulation of Utilities (CRU) to approve a price increase in order to facilitate this. It is estimated that such a price increase would result in household electricity bills increasing by at least €1.60 per week or about €83 per year.
Mr Lynott said the investment is 'absolutely needed' and should be treated the same way as investing in any other 'essential' service, such as roads or water.
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Mr Lynott said renewables such as wind, solar and hydropower currently provide about 40 per cent of electricity in Ireland. He said this figure needs to increase to 'reduce emissions' and improve the efficiency of the grid.
He said a price increase of around €1.60 per week for electricity should be viewed 'in context', noting that people in Dublin regularly pay €3.75 for a cup of coffee 'if they're lucky'.
'That's not to say that the price increase won't be difficult for some people but there are measures that can be done by the Government to negate this, such as energy credits.'
Mr Lynott said people over the age of 65 and single mothers with children under 18 are two cohorts most likely to feel the impact of a bill increase. He said the Government should consider giving these groups a free allotment of electricity units.
He said universal credits are 'regressive' and the only way to tackle 'energy poverty' is with targeted measures such as electricity credits.
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Irish electricity prices, already Europe's highest, may rise further due to 'required investment'
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The Department of Social Protection provides a €35 monthly electricity allowance through the Household Benefits Package to help individuals with their energy bills. This allowance is paid directly into a person's bank account, so is not necessarily spent on energy bills, My Lynott noted.
It was announced in Budget 2025 that all domestic electricity customers would get €250 off their electricity bills via two instalments of €125, as part of the Government's cost-of-living package. Similar measures had been announced in previous budgets.
However, the Government has indicated that universal credits may not feature in the upcoming budget, potentially being replaced with more targeted measures.
'We're not going to have a cost-of-living package this year,' Taoiseach Micheál Martin said in February.
The Irish Times has contacted ESB Networks, the Department of Social Protection and the Department of Climate, Energy and the Environment for comment.
