Electricity Prices Ireland: Price per kWh - May 2025

By Cormac Breen

Content Manager

Cormac is Selectra.ie's energy expert along with being the chief content and editorial manager for the website. His aim is to help find the best deal for you and your home energy needs so that you save money on your annual bills. His knowledge and experience of the Irish energy market allows him to offer the best advice and insight into current prices, emerging trends and overall energy saving tips.

In May 2025, the average price of electricity in Ireland per unit is 34.63c per kWh. This is based on a standard, 24hr urban rate comparing all providers with VAT included. Community Power has the cheapest unit rate per kWh at 28.80c including VAT. The average estimated electricity bill in Ireland is €1,556.49 including VAT and other charges. If you are looking to compare electricity prices in Ireland, you can call 📞(01) 913 1771.

Electricity Prices, Ireland: How Much is a Unit of Electricity?

In May 2025, the average price of electricity in Ireland per unit is 34.63c per kWh. This is based on a standard, 24hr urban rate comparing all providers with VAT included.

Community Power has the cheapest unit rate per kWh at 28.80c, while Energia has the most expensive unit rate at 38.08c.

Below you will find a table that compares each provider's standard, 24hr. Urban unit price.

No discount offers have been applied to these unit rates, and they represent the supplier's standard that customers are moved on to after the first 12 months of their contract.

⚡ Kwh Unit Price per Supplier

Supplier	Unit Price
	28.80c
	29.03c
	33.62c
Average Unit Rate, 34.63c
	34.75c
	35.48c
	35.90c
	36.65c
	37.03c
	37.05c
	37.56c
	38.08c
Call Selectra to Switch Energy Supplier Today!  01 913 1771 Schedule a Free Call! Schedule a Free Call

*Figures are for illustrative purposes only. Unit rates are based on a standard, 24hr, urban rate, and include VAT. No discounts have been applied.
Last updated: April 2025

We remind you that the quickest and most effective way to save money on gas and electricity bills is to compare energy offers and switch energy providers every 12 months.

This can usually save you anything from over €300-500 a year, which can help with the cost of living.

Electricity Prices Ireland - How To Calculate Price per kWh

The 'raw' cost of electricity in Ireland is often less than 50% of the price that the consumer pays.

The final price of a kWh of electricity is made up of the following:

• Electricity Generation: This is the cost of producing electricity, which includes fuel costs, operating expenses, and profit margins for generators. It accounts for approximately 55–60% of the total electricity price and is determined through competitive bidding in the wholesale market.
• Transmission & Distribution:These are the costs associated with transporting electricity from power stations to end users. They include infrastructure maintenance and development, and are regulated by the CRU. This component typically makes up about 30% of the electricity price.
• Supplier Charges: These charges cover the costs incurred by electricity suppliers in billing, metering, and customer service. They represent around 5% of the total price.
• Public Service Obligation (PSO Levy): This levy supports government policies related to renewable energy and energy security. It is set by the CRU and has historically been around 5% of the electricity price.
• Taxes (VAT & Excise Duty): Electricity supplied for business use is subject to an excise duty of €1 per megawatt-hour. Additionally, VAT is applied to electricity supplies, with the standard rate being 23%. However, domestic electricity supplies are exempt from excise duty.

Below is a visual representation of this breakdown:

Ireland still has some of the most expensive electricity in the EU, but with the wholesale price of gas expected to fall this year, further price decreases may be on the horizon.

Will Electricity Prices Increase in Ireland in 2025?

Electricity prices in Ireland had been steadily risen year-on-year over the last 10 years before seeing a large spike in price from 2022 onwards.

Below, you can track the evolution of the average price of a kWh of electricity in Ireland since 2015.

Source: Trading Economics
Figures quoted include relevant taxes and levies applied.

With the average unit price already one of the highest across the EU, the average annual electricity bill is set to increase in 2025 due to the following:

• PSO Levy increase
• VAT increase
• Network charge increase
• Carbon tax increase

PSO Levy Increase

The PSO Levy for 2024/25 will increase from zero to €3.23 (excluding VAT) per month, or €38.76 per year for households. The increase took effect from 1st October 2024.

The PSO levy ensures a guaranteed price for electricity produced by renewable energy providers. The levy increases when wholesale energy prices decrease, which has happened this year.

VAT Increase

The rate of VAT on electricity bills has been reduced to 9% since 2022 in an effort to lower home energy costs.

This lower rate of VAT is set to continue in 2025 and will be reexamined in this year's budget in October.

Network Charge Increases

The Commission for Regulation of Utilities (CRU) announced that regulated network charges will increase by an average of €101 per annum for residential electricity customers.

It is yet to be seen if suppliers will absorb the cost of these increases or seek to pass the cost on to the consumer.

Carbon Tax Increase

From 9 October 2024, the rate of carbon tax for petrol and diesel was increased from €56 to €63.50 per tonne. The increase will apply to all other fuels from 1 May 2025.

The tax is aimed at reducing Ireland's use of fossil fuels by encouraging people to make more environmentally sustainable choices when it comes to their use of gas, petrol and diesel, home heating oil and other carbon emitting fuels.

While the Carbon Tax is not applied to electricity only customers, gas and dual fuel customers will see an increase in their monthly bills.

Are Irish Electricity Prices the Highest in Europe?

According to data for the first half of 2024, household electricity prices in Ireland were the second highest in the European Union, following Germany. 

Ireland's average price was €0.3736 per kWh, compared to Germany's €0.3951 per kWh.

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

Several factors contribute to Ireland's elevated electricity prices:

• Energy Mix: Ireland's reliance on natural gas for electricity generation, which is subject to global market fluctuations, can lead to higher costs.​
• Infrastructure Costs: Ireland's geographic location and dispersed population result in higher costs for maintaining and upgrading the electricity grid
• Market Size: As a smaller market, Ireland may face less competitive pressure to reduce prices compared to larger European markets.

What Can I Do To Lower My Electricity Costs?

With electricity prices remaining high, and no sign of significant reductions in the coming months, there are some steps you can take to help reduce your annual costs:

• Compare Your Provider: Compare the electricity market and make sure you are with a reputable provider with a fair cost of electricity.
• Check Your Prices: See our average cost of electricity guide to compare your utility bills to the average home to have an idea of what is a fair cost.
• See the Latest Offers: Visit our cheapest electricity in Ireland guide to see the latest offers and think about switching electricity provider.
• Improve Your Home Efficiency: Reduce your electricity consumption to save on bills while being more energy efficient.

Those with bigger budgets can invest in home upgrades to reduce their electricity consumption, while also improving the efficiency of their homes:

• Install a smart thermostat to heat your home more efficiently.
• Upgrade your windows and doors to improve heat retention.
• Insulate your attic and cavity walls to increase your home's energy efficiency.
• Replace your boiler with a more efficient model.

By Cormac Breen

Content Manager

Cormac is Selectra.ie's energy expert along with being the chief content and editorial manager for the website. His aim is to help find the best deal for you and your home energy needs so that you save money on your annual bills. His knowledge and experience of the Irish energy market allows him to offer the best advice and insight into current prices, emerging trends and overall energy saving tips.