Beat the Price Increases and Save Money on Electricity in 2026
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Rural electricity is more expensive due to the higher standing charge fees applied to rural electricity meters. Rural residential customers (DG2) pay an average standing charge of €337 per year, which is roughly €72 more than the €265 average for urban dwellers (DG1). While you cannot change your classification, you can reduce costs by switching electricity provider through Selectra at 📞 (01) 913 1771.
Selectra explains the key differences between urban or rural electricity costs in Ireland:
In Ireland, the cost of delivering power to your home depends on your location.
As it costs more to maintain poles and wires across vast countryside than in a dense housing estate, customers are split into two main categories: urban or rural electricity.
This distinction is managed by ESB Networks through Distribution Group (DG) codes:
Meter Type | Urban Annual Cost (DG1) | Rural Annual Cost (DG2) |
|---|---|---|
24hr Standard | ~€245.00 | ~€310.00 |
Smart Meter | ~€268.00 | ~€345.00 |
Figures include 9% VAT. Last updated, February 2026.
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You do not need to count the distance to your nearest neighbour to find out your status.
There are three simple ways to check:
Every energy bill in Ireland must display your DG code. It is usually found near your MPRN (Meter Point Reference Number).
Suppliers like Electric Ireland or Bord Gáis clearly label their tariffs. If your bill says "Rural 24hr" or "Rural Smart", you are on a DG2 connection.
When you use a comparison tool, the system pulls data from the national registry based on your MPRN to ensure you are quoted the correct urban or rural electricity rates.
Can I Switch from Rural to Urban?
Generally, no. This classification is based on the physical infrastructure connected to your home. Even if your area becomes more developed, your DG status rarely changes unless ESB Networks performs a wide-scale re-zoning of the local grid.
The higher cost isn't a penalty; it’s a reflection of the "network use of system" (DUoS) charges.
Rural connections require more equipment (poles and transformers) to serve fewer people.
In 2026, these costs have been further impacted by:
If you are on a rural tariff, you are already starting with a higher annual cost.
To combat this, you must be more strategic about your choice of provider.
Consider a family of four using the national average of 4,200 kWh per year.
By switching providers, that rural family could bring their bill down to under €1,400, more than making up for their location-based charges.
Taxes and Levies on Rural Bills
It is important to note that the PSO Levy and VAT are applied regardless of your location. However, because VAT (9%) is a percentage of the total bill, rural customers technically pay slightly more in tax because their base standing charge is higher.
Yes, but primarily in terms of fixed costs. While unit rates (c/kWh) are usually identical for both types, rural customers pay a higher standing charge to cover the cost of maintaining the electrical grid across longer distances and less dense areas.
DG2 is the official distribution code assigned by ESB Networks to a rural residential connection. Conversely, DG1 refers to an urban residential connection. You can find this code on the top right-hand corner of your bill, usually near your MPRN.
In almost all cases, no. Your classification is determined by the physical infrastructure and density of the network. Even if your specific area becomes more developed, your connection remains rural until ESB Networks performs a wide-scale re-zoning of the local grid.
The most effective way to offset a high rural standing charge is to switch providers and prioritise high cashback offers. Upfront credits of €200–€300 can effectively "wipe out" the annual price difference between urban and rural charges.
Yes. The PSO Levy is a flat government-mandated charge that is the same for every residential customer in Ireland. It does not fluctuate based on your location or whether you are classified as DG1 or DG2.
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The services and products mentioned on this website may only represent a small selection of the options available to you. Selectra encourages you to carry out your own research and seek advice if necessary before making any decisions. We may receive commission from selected partner providers on sales of some products and/or services mentioned within this website. Our website is free to use, and the commission we receive does not affect our opinion or the information we provide.
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