IRELAND’S ENERGY REGULATOR has said energy providers are not making ‘excessive profit’, and high energy prices are instead driven by wholesale costs, pass-through charges and network investments.

The news comes just days after it was reported that Ireland has the highest household electricity prices in the European Union.

Statistical agency Eurostat last week found that increases in energy prices last year mean the average Irish household is now paying around €480 a year more for its electricity compared with the EU average.

However, today’s report from the Commission for the Regulation of Utilities (CRU) on the Irish electricity and gas markets suggests that high energy prices aren’t caused by an issue with competition in the energy market.

“Our initial assessment of supplier profit margins does not suggest excess profitability or that suppliers have been able to sustain materially elevated returns,” the report said.

It said that more detailed work on the area will be carried out in the coming months. 

CRU found that competition in the Irish retail electricity and gas markets is “functioning reasonably well and is generating meaningful rivalry”.

It said there was no evidence of significant barriers preventing new energy providers entering the market and consumers can choose from a range of suppliers.

It found that consumers can make “significant savings” from switching providers, and noted that Ireland has high domestic switching rates by comparison to other European countries.

The Competition and Consumer Protection Commission (CCPC) contributed to the CRU report, which was requested by energy minister Darragh O’Brien.

CRU commissioner Jim Gannon said: “We welcome the findings of the report, which provide helpful clarity on energy competition and pricing and confirm that retail energy markets continue to operate competitively, while highlighting the opportunities available to customers to reduce their bills.”

“A more detailed review of competition in the retail energy markets will be completed, providing further analysis of competition across the market.”