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HOUSEHOLD ENERGY BILLS may not see large increases as the sector seeks to raise funds for an up to €18bn revamp of Ireland’s energy grid, price comparison site Bonkers.ie has said.
The Commission for Regulation of Utilities (CRU) has published a proposed investment plan, seeking to upgrade Ireland’s energy grid between 2026 and 2030. It could cost between €14.1bn and almost €19bn, its proposal says.
This could add up to €16 per year to household bills, but Bonkers.ie’s communications manager Daragh Cassidy has suggested that substantial increases may not hit consumers’ bills if wholesale energy costs fall.
Wholesale energy prices increased massively following the Russian invasion of Ukraine. This resulted in many household energy bills getting more expensive in recent years.
According to Cassidy, wholesale costs for Irish providers are up to 80% higher than they were before the war. As the market stabilises, there’s a possibility that substantial decreases in supplier prices may “cancel out” the need to increase consumer bills.
“So we may not necessarily see a rise in consumers’ bills,” he said.
Upgrading the Irish energy grid was debated following Storm Éowyn earlier this year, where substantial power outages continued in parts of the country for almost a month after the passing of the storm.
Long-standing issues with the grid are now causing bottlenecks, such as supply shortages and resilience issues. This, according to Cassidy, is now impacting the delivery of housing and the state’s ability to meet climate targets.
Cassidy said: “While the potential €6 to €16 a year increase in households’ electricity bills may not be welcomed by consumers, it’s moderate in the overall scheme of things.”
A €16 annual increase may be a “price worth paying” in that context.
However, it is up to individual providers to decide how they pass increases in network or grid fees onto consumers. Cassidy said companies can choose to absorb the costs or increase bills.
A public and industry consultant phase on the proposed upgrades will now begin, with the CRU set to make a final decision later this year. The energy regulator encourages customers to shop around and switch suppliers regularly to get the best deals.
The Irish Independent reported of confusion among providers over the extent of the possible increases to bills. Providers, according to the newspaper, say fee hikes will need to be much higher than €16 per year to raise the funds needed for the upgrades.
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One of the most expensive electricity in the world.
Most expensive electricity in europe.
Should we be thankful that it MAY NOT increase?
@Lei tatt: But then it says in the first sentence “may not see large increase”.
TBH, about €1\month doesn’t matter by now.
@Lei tatt: nit really. Geemany is more expensive according to media reports
@no no no: why is it not not possible to edit texts to fix typos.always bothered me here
@no no no: 0.39 vs 0.37 per kw, you are right 2 cent difference. Now compare the cost of living in Germany and Ireland – groceries, insurances ,petrol, rent.
@Lei tatt: we are robbed for everything and government complicit in it. Creaming vat and taxes on everything but the air we breathe. And I’m sure they’ve looked at that for a remedy.
Let’s not kid ourselves here when was the last time a major infrastructure project in Ireland didn’t cost the public far more than originally advertised? We’re now being told this €14 to €19 billion grid upgrade “may not” increase energy bills but that feels about as reliable as saying it “may not” rain in Donegal.
For some context, Ireland’s proposed €18 billion spend over five years works out at roughly €705 per person per year. Compare that to Germany their grid upgrade plan totals €650 billion by 2045, but with a population nearly six times the size of ours, that’s around €392 per person per year. So, we’re staring down one of the most expensive per-capita grid upgrades in Europe, and yet we’re expected to believe it won’t end up costing households more?
And we only need to look at recent history to know how this goes the Dublin Port Tunnel came in 160% over budget, the National Broadband Plan ballooned by 500%, and both landed squarely on the shoulders of taxpayers.
Meanwhile, Irish households are already paying 30% more for electricity than the EU average, and network fees here account for one of the highest proportions of energy bills in Europe, making up around 36% of the total bill. Some sources suggest Irish network fees run well above European norms, so forgive the scepticism when officials trot out this €6 to €16 yearly increase as if that’s the full story. It feels more like a soft opener than reality.
And it’s not hard to predict what happens next the costs will quietly land back on us, just dressed up under some new creative label. Maybe it won’t be called an “energy tax,” but expect a “climate resilience fee,” “renewables connection charge,” or “grid stability contribution” to quietly creep onto your bill.
The bottom line? Projects of this scale never stay neatly contained. The ESRI and CRU themselves have already signalled the real household impact could be over €100 a year, blowing that €16 figure out of the water. And once grid fees go up, they rarely come back down they just keep creeping higher, with more charges piled on for good measure.
Yes, we need a modern, reliable energy grid no one denies that. But let’s not pretend this price tag won’t quietly trickle down to every home in the country just like always.
@Rafa C: While the per head cost in Germany is lower than here, kindly note that PV microgenerators who sell to energy suppliers earn eur 0.08 compared to eur 0.21 here in Ireland, and that there are plans in place to tax the eur 0.08 to the detriment of the PV microgenerators, so they’ll be paid even less.
So a lot of them are taking their plants off the grid and use their surplus privately, and swapping what’s a standard 6kwh storage battery for 60kwh batteries.
Having said that, microgenerators in Germany can sell their surplus on the open market.
@Rafa C: You, on the other hand, have most defo done your homework . The only missing figures for comparison are those other European countries’ network/standing charges. Lots of readers on here with holiday or investment homes in other EUropean countries could provide reliable info on this.
Keep up the good work – please and thank you!
@Athena: Good points, Athena definitely fair to highlight the difference for microgenerators, and no doubt the feed-in tariffs here in Ireland are relatively better at the moment compared to Germany’s €0.08 rates.
On paper, that looks like a big win for the Irish.
Germany’s lower tariff is offset by scale, system costs, and better infrastructure. Solar panel installation costs are significantly lower in Germany thanks to economies of scale, greater competition, and a more established renewables market. Solar adoption is far higher, with millions of homes equipped for microgeneration. German homeowners also tend to install larger battery systems some up to 60 kWh, compared to Ireland’s typical 6 kWh allowing them to store more energy, reduce reliance on the grid, and maximise self-consumption. On top of that, German microgenerators can sell surplus energy on the open market, offering more flexibility, even if the base tariff is lower.
Ireland’s higher export rates partly compensate for higher upfront costs, fewer sunlight hours, and lower overall generation. Uptake is still relatively small, and the benefits are concentrated among a limited group of households leaving the broader public more exposed to rising grid costs, especially with major upgrades on the horizon.
@R.A. Kelly: Appreciate that and you’re spot on, the network and standing charges across Europe would complete the picture properly. I’ve been digging into the available stats, but a lot of those everyday household costs vary by region and supplier, so real-world input from people with homes abroad would be gold.
If anyone’s got reliable figures from their bills in places like Spain, Portugal, France, or Germany, especially for standing charges or grid fees, it’d be great to compare properly. We always hear broad averages, but the devil’s in the detail when it comes to what actually lands on people’s bills.
Thanks for the encouragement I’ll keep digging!
@Rafa C: you’re comparing apples and oranges….. Do you know how much is involved in upgrading GER vs IRE grids. Usually smaller projects are more expensive relative to bigger ones, economies of scale….. Are their infrastructures currently on par. Wage comparison? Will the upgrades be on par hardware/tech wise? We are an island, do we have to hire in particular hardware and specialist staff? They are a much bigger economy and may have the resources readily available which will obviously cost less
@Paul Hedderman: Thanks for the thoughtful points, Paul.
It’s true that larger projects generally benefit from lower per-unit costs. Germany’s grid upgrades serve a population of about 83 million versus Ireland’s 5.1 million. Bigger scale often means bulk purchasing, established supply chains, and more competitive contracting all of which can reduce costs.
Germany’s average wages in construction and engineering tend to be higher than Ireland’s. But this can be offset by Germany’s mature market and abundant local skilled labour, while Ireland may need to bring in more specialist contractors from abroad at premium rates, which adds to costs.
Ireland’s island geography means importing heavy equipment and specialised hardware can add logistics costs and delays that Germany, with its extensive land connections, generally avoids. This can drive prices up for transport, customs, and timing.
Germany’s grid is older but also much larger and more interconnected with neighbouring countries, allowing cost-sharing and operational efficiencies. Ireland’s grid, while smaller, is less connected, meaning upgrades might require more standalone investment in redundancy and resilience.
All that said, the headline figure of around €705 per person per year in Ireland versus €392 in Germany still signals a substantial cost premium per capita. So while scale, wages, and geography explain some difference, it doesn’t fully justify Ireland’s much higher per-person cost, especially when consumers here are already paying some of the highest electricity prices in Europe.
The key question remains are these costs being managed efficiently, or will Irish consumers end up bearing the brunt of potentially avoidable expenses?
So misleading. The article says it will increase annually by between 6 and 16 euro . Also if the wholesale price does go up then it will go up. Shocking journalism here
@Furious George – The Wasp: The electricity market is in turmoil thanks to disastrous EU policy. TheJournal here are trying to say that as wholesale prices decrease, the savings won’t be passed on to consumers – kinda like if hospitality VAT drops to 9%, your burger will be just as expensive. Another words, the average Joe is never going to catch a break.
@Furious George – The Wasp: the journal isn’t journalism….its propaganda, plain and simple.
@Furious George – The Wasp: selective journalism
why would there be increase of an already rip off energy bill ?
they make billions and expect to pay for this ? if you tax anyone start by the data centers, then move on to the electric cars owners, I believe they have special plugs as well so easy to detect.
@Dominic Leleu: When Eamon Ryan and his cabal of green disciples collectively disconnect from the ESB and rely totally on a wind turbine in their garden and a few solar panels on their roofs then renewable energy will have come of age. Until then, it’s all being constructed as a giant milk the public scam.
@Dominic Leleu: the equivalent of the person that delivers your food takeaway gets a new car, and adds two euro onto everyone’s bill to pay for it. They are the ones making a fortune out of it. Why are we having to pay for it? Sickens me.
FFG facilitated price gouging by not addressing the issue and giving our taxes as credits .
We pay more for everything ?
If only they had had a windfall, that if they ringfenced, they could largely make us energy self-sufficient.
@ecrowley ecrowley: We need that for Simon’s fighter jets to be based in Shannon. Which as we now know as Ukraine has proven, can be easily destroyed by a few drones.
The grid is primarily upgraded to serve energy hungry data centers. It is and would be highly unfair to ask average joe.and jane tonpay for it
‘And pigs will fly’
You borrow €18 billion, someone has to pay it back.
There will be a lot of pigs at the trough, with this amount of money involved.
Electricity prices will never come down, and we are being led up the garden path by giving one source of energy so much power and control.
Let the data centre owners cover the cost..the Irish peoples pockets have been pinched enough for energy prices..
Cost of electricity now some people may revert to candles and paraffin lights
@Ailbhe MacThomais: and they’d still get charged standing fees and charges for sitting in the dark and eating out of a can
For heavens sake! This opens the door for those greedy energy companies to slap hefty increases on to our already overloaded accounts.
Were doing this for data centres they can pay
Next thing is private investment needed to keep the electricity grid functioning…..que the FG/FF friends using their ill gotten gains to take over the national grid and screwing the people again for life….nice job from and for the boys…………WHEN WILL THE PEOPLE EVER LEARN !!!!!!
The comments are closed for obvious reasons, but just want to say – great piece by Fatima Ahmed. So sorry that some of us have swallowed the kool aid, fallen for the concerted international campaign to turn the clock back and forgotten every single one of the good aspects of being Irish. They are sadly turning the tricolour into a symbol of hate like certain other flags, where any good is dragged out of it by the regressive and ignorant who use it as their calling card.
You hope for the best, but it’s hard to see any quick fixes while this anachronistic mindset remains in fashion and is promoted by the most visible world leaders 24/7. Hope you are ok Fatima and anyone else on the receiving end of this completely unjustifiable bigotry and hate.
Self sufficiency the only way
This is how it goes.
We need money to develop the infrastructure so let’s levy the users.
When the infrastructure is completed we need to recoup what we spent so we will increase our prices.
Same with “hospitality”.
VAT is a tax collected by us from the consumer. C
Give us a VAT reduction so that we can collect the tax at the old rate and forward it to the Government at the new rate and pocket the difference!
The proposed upgrade to the grid is for a centralised grid, locking consumers and nonconsumers alike into paying Eirgrid forever.
We need a decentralised robust grid, with local energy production and adequate storage. Eg home batteries and V2G.
Eirgrid are acting in the interests of only themselves and Data Centers.
We’d have had quite reasonable electricity generation if Christy Moore and his guitar hadn’t sunk our chance for a Nuclear power station.
Instead of the hodge podge of hydro and oil and coal and gas stations scattered across the country, 2 small nuclear stations would power the entire country.
@Ronan Mc: Agreed. Nuclear is a no brainer, which I guess is why government won’t do it.
“May not”. So we definitely will be getting increases to pay for it.
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