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.
ESB Networks estimates it will need around €13.4 billion to upgrade the system between 2026 and 2030.
The company 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.
A spokesman for ESB Networks said that Ireland, along with many other European countries, “is currently experiencing high demand for new electrical connections – which has led to capacity constraints on both the distribution (ESB Networks) and transmission (EirGrid) networks".
Teens accused of ‘savagely’ beating man (60s) in south Dublin burglary freed due to lack of detention spaces
Rory Stewart: Britons’ view of Ireland has gone from ‘patronising superiority to complete ignorance’
‘You can now carry your shopping if you spend €50-€60. That’s absolutely crazy’
After being quoted up to €25,000 for floors, this handy Wicklow couple did it themselves for €1,500
“This high demand is driven by a range of factors including large energy users, electrification of transport, heat and industry, accelerated climate and housing targets and population growth,” he added.
Dara Lynott, chief executive of the Electricity Association of Ireland, told The Irish Times the investment is “absolutely needed” and should be treated the same way as investing in any other “essential” service, such as roads or water.
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.
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.
A spokeswoman for the Department of Climate, Energy and the Environment said the Government is “committed to addressing high energy costs experienced by Irish consumers”.
“The Programme for Government acknowledges the increased energy cost pressures on households and businesses and commits to bringing forward measures to help contain these costs.”
