How are Electricity Prices Affecting Homeowners in Ireland?

By Cormac Breen

Content Manager

In 2024, Irish homeowners were paying the second-highest prices in Europe for their electricity and the fourth-highest for their gas bills, adding to rising costs across multiple sectors in Ireland. As households continue to face this growing financial burden, here at Selectra, we sat down with one Irish homeowner to get their opinion and insight into the current situation regarding electricity prices in Ireland, what changes they have made to their consumption habits, and if they believe government schemes and energy credits are doing enough to tackle the issue.

Why Are Electricity Prices So High in Ireland?

Irish consumers continue to face some of the highest electricity bills across the EU, with the average bill in Ireland now €1,496.03 for homes with a 24hr urban meter.

The latest figures from Eurostat indicate that Ireland's electricity prices have increased by almost 43% since 2020 from €0.2616/kWh to €0.3736/kWh in 2024 making Ireland's electricity bills the second highest across the EU.

Source: Eurostat EU Electricity Prices
Figures quoted include relevant taxies and levies applied. Last updated, January 2025.

There are several factors which have contributed to the high price of electricity in Ireland, including:

• Rising wholesale prices - Russia's invasion of Ukraine in 2022 caused a spike in wholesale gas prices, leading to huge increases in electricity prices across Europe.
• Lack of natural resources - Without a source of indigenous fuel, the Irish energy market has to import the majority of its energy from abroad, increasing the cost for consumers.
• Overreliance on fossil fuels - While Ireland is producing more of its own energy in the form of renewables, it is still reliant on fossil fuel imports, which are often volatile in their price increases.
• Logistics - As an island nation, we are at the end of a long, logistical distribution network for fossil fuel imports that have often had several taxes and charges placed on them before arriving here which in return, increases costs for consumers.
• Renewable energy still lagging behind - While almost 40% of energy in Ireland is produced thanks to wind farms, investment in them is expensive along with high operations costs, resulting in a continued reliance on fossil fuels.
• Data centres - Ireland is the largest data centre hub in Europe, with over 80 now on the island. They have huge energy demands to keep them cool due to the heat they produce and in 2023, they accounted for almost 21% of electricity consumption in Ireland.

How Are Homeowners Dealing With Electricity Prices?

As part of our blog series, we sat down with Padriag Linehan, a retired homeowner living in Co. Kildare, to learn about his experience of the current situation regarding electricity prices in Ireland and to get an insight into how rising electricity prices are affecting Irish homeowners,

Have you seen a big change in the price of electricity over the last 10 years?

"Without a doubt. Up until about 5 years ago I was paying maybe 17 or 18 cent per unit, but then there was a big spike in prices around three years ago, and now I'm paying almost double that. Hopefully it will go down soon. I use oil for heating and I have also seen a big increase in that too. Maybe 7 or 8 years ago you could get 500 litres for about €250 and nowadays, I'm paying about €500 or more."

How did you manage your energy costs in the past, and have they changed?

"If I think back about 15, 20 years ago, the cost of electricity would have had a bigger impact compared to when I was paying a mortgage and my children were younger. At that time, paying the electricity bill, it was a bit of a struggle. It was a bill you didn't like seeing at the time. It was a significant household bill. The biggest challenge there was coming up with the money to pay those bills when they came. I can only imagine how difficult it is now for young families given the increase in prices."

How aware are you of your current electricity costs?

"I am maybe not as aware as I should be, but I know that the unit price is something around 35 cents. Then onto that, you have the standing charge, which I wouldn't be very aware of. Since I went on to a paperless bill, I don't look at the bill in any great detail on a regular basis. Maybe if there's some reason to look at it, but I wouldn't be looking at every bill and scrutinising it as I use a level pay scheme and have the same amount deducted every month. I suppose this can be a bit deceiving as the price doesn't reflect how much I'm actually using."

Has the rising cost of electricity impacted you directly?

"I think I've been lucky in that, so far, I haven't been impacted too much by recent price increases. I think a lot of this is down to the fact that I pay a set amount each month and over the last two winters, the government electricity credits have gone a long way to covering my bills. Were they to stop this year, I think I would notice more of an impact and might have to have a closer look at who my supplier is and how much I am spending."

Have you thought about switching provider?

"I have been with Energia for the last two years as I was able to get a good discount of 40% when I signed up, which was then carried over into the second year of the contract. I pay a standard, variable rate and while I hear a lot about switching to a smart tariff or a night saver tariff, I don't believe the small savings I could make would be worth it. On top of that, the government credits have taken the sting out of my bills over the last two years. I am out of contract in February and I will look at switching providers this year."

Government Schemes and Electricity Prices in Ireland

In a bid to ease the pressure of rising electricity prices, the Irish government took several actions in order to lower household electricity bills, including the introduction of winter electricity credits, along with a reduction in the rate of VAT and the PSO levy.

On top of this, the government has been supporting homeowners through various SEAI schemes to retrofit their homes in a bid to increase their efficiency and reduce costs.

Are you aware of any government schemes designed to help homeowners manage electricity costs?

"I would be pretty well aware of government schemes. As I'm over 70, I get the Free Electricity Allowance along with some other things like the free TV licence as part of the Household Benefits Package. On top of these, as I've mentioned earlier, the electricity credits have gone a long way to help with my electricity costs these last two years. Being on a fixed income at the moment with no major overheads, we're lucky to be well able to cope now."

Do you think the government does enough to support homeowners in retrofitting their homes?

"I did avail of an SEAI scheme a few years ago which was a grant for extra insulation of the attic and cavity walls, which has helped with some of my home heating costs. I know you can get a grant for a retrofitting of houses and installing heat pumps but they're pretty expensive. From what I've heard, they can be expensive to run, and I know some people who have had bad experiences with them."

What support would you like to see from the government to help manage electricity costs?

"I suppose one thing they could do is to keep the VAT rate low or non-existent. In times of high energy, spikes they could continue with the subsidy and increase it if costs were to rise suddenly like they did a few years ago. Having said that, I would prefer for the government to encourage, in whatever they can, for electricity companies to lower their rates as opposed to handing out credits every year. At the end of the day, these credits are essentially taxpayers money that is now going directly to the companies, which gives them no incentive to lower prices as they are still getting their money while keeping prices high."

How To Lower Your Electricity Bills

With high prices for electricity set to continue, here at Selectra, we want to help you lower your annual bills by finding you the cheapest plan that suits you and your energy needs.

Our energy experts compare all Irish electricity suppliers to find you the best deal that will help you save money in 2025.

• ⚡ Benefits of Switching Energy Supplier
• Save money with lower bills by switching provider.
• Help with the cost of living
• Avail of discounts and introductory offers for cheaper electricity prices.
• Reduce your household bills
• Avoid being switched to a more expensive rate after 12 months
• Find a better energy company for customer service, online payments, etc.
• Take advantage of your 14-day cooling-off period