What Are Electricity Network Charges and Why Are They Increasing?

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.

Updated on 27/08/2025

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Electricity network charges in Ireland are the costs associated with building, maintaining, and operating the country's electricity grid. They have increased in recent years as Ireland aims to modernise and diversify its electricity grid system, leading to an increase in the average annual electricity bill as costs are passed on to consumers by electricity suppliers. If you are looking to switch electricity provider, you can call 📞(01) 913 1771.

What Are Electricity Network Charges?

Electricity network charges are the fees levied to cover the costs of building, maintaining, and operating the physical infrastructure that makes up Ireland's electricity grid, including, network of power lines, poles, substations, and control centres spanning the entire country.

This network is constantly working to transport electricity from where it's generated (power plants, wind farms) to where it's consumed (homes, businesses, factories).

The costs associated with managing this complex system are recovered through these charges.

In Ireland, these charges are primarily divided into two main categories:

Transmission Use of System (TUoS) Charges:
These charges relate to the high-voltage transmission network. This is the "motorway" of the electricity system, comprising large pylons and high-capacity lines that move electricity over long distances from major power generation sites to regional substations. EirGrid, as the Transmission System Operator, and ESB Networks, as the Transmission Asset Owner, are responsible for this critical infrastructure.
Distribution Use of System (DUoS) Charges:
Once electricity reaches the regional substations, it's stepped down to lower voltages and distributed locally through the "A-roads and local streets" of the electricity network. This is the distribution system, made up of smaller poles, underground cables, and local transformers that bring electricity directly to your doorstep. ESB Networks is responsible for the distribution network.

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What Are Electricity Network Charges Used For?

The revenue generated from electricity network charges is necessary for the functioning and future development of Ireland's electricity system.

These funds are allocated to several key areas:

Maintenance and Repair: The electricity network is constantly exposed to the elements, wear and tear, and potential faults. Regular maintenance, emergency repairs, and ongoing upkeep are essential to ensure a reliable and safe electricity supply.
System Operations: EirGrid and ESB Networks continuously monitor and manage the flow of electricity across the grid. This involves complex operational tasks, ensuring supply meets demand at all times, responding to outages, and managing the integration of diverse power sources.
Network Upgrades and Modernisation: The existing grid infrastructure needs continuous upgrading to cope with increasing demand, replace ageing equipment, and improve overall efficiency and resilience.
Capacity Expansion: As Ireland's population grows and the economy expands, so does the demand for electricity. Network charges fund the necessary expansion of the grid to connect new homes, businesses, and industrial sites.
Integrating Renewable Energy: Ireland has ambitious targets for renewable energy, especially wind power. Connecting large-scale wind farms and other renewable generators to the grid requires substantial investment in new transmission and distribution lines, as well as smart grid technologies to manage the intermittent nature of renewables.
Security of Supply: Investment in the network helps ensure that Ireland has a secure and stable supply of electricity, reducing the risk of widespread power outages.

How Are Electricity Network Charges Calculated?

In Ireland, the Commission for Regulation of Utilities (CRU) is the independent body responsible for overseeing the electricity market, including calculating electricity network charges.

This is unlike the unit rate for electricity consumed, which varies based on your supplier and tariff.

The CRU's role is to ensure that EirGrid and ESB Networks operate efficiently and that the costs they pass on to consumers are justified and reasonable.

Here’s a simplified look at the calculation process:

How Electricity Network Charges Work

Revenue Proposals: EirGrid and ESB Networks submit detailed proposals to the CRU outlining their projected operational costs, maintenance budgets, and investment plans for the coming year or multi-year period.

CRU Review and Approval: The CRU rigorously reviews these proposals, scrutinising every aspect to ensure efficiency and value for money. They challenge proposed expenditures and set "price controls" that limit the revenue the network companies can recover from customers.

Charge Setting: Once the total allowable revenue for the network companies is determined, the CRU sets the specific TUoS and DUoS tariffs. These tariffs are designed to recover the approved revenue from all electricity customers.

Customer Categorisation: The charges are often differentiated based on customer type (e.g., residential, small business, large industrial user) and sometimes location (e.g., urban vs. rural), reflecting the different demands and costs associated with serving various customer groups.

Supplier Pass-Through: Electricity suppliers then incorporate these CRU-approved network charges into the bills they issue to their customers. They are a "pass-through" cost, meaning suppliers don't profit from them; they simply collect them on behalf of the network operators.

Why Are Electricity Network Charges Increasing in Ireland?

Ireland has experienced notable increases in electricity network charges in recent years, a trend driven by a combination of unique factors:

Ambitious Renewable Energy Targets: Ireland is at the forefront of integrating renewable energy, particularly wind power. This requires massive investment in grid infrastructure to connect new wind farms, upgrade existing lines, and build new interconnections to handle the variable nature of renewable generation.
Geographical Challenges: Ireland is an island nation with a relatively dispersed population, especially in rural areas. This means that more kilometres of power lines and equipment are required per customer compared to more densely populated European countries, leading to higher per-customer network costs.
Ageing Infrastructure: Like many developed nations, parts of Ireland's electricity grid are ageing and require significant investment for replacement and modernisation to ensure continued reliability and safety.
Increased Demand and Electrification: Growing population, economic activity, and the push towards electrifying transport (electric vehicles) and heating (heat pumps) are placing greater demands on the electricity network, necessitating further investment in capacity.
Inflationary Pressures: Broader economic inflation, impacting material costs, labour, and financing, also contributes to the rising costs of maintaining and developing the grid.
Security of Supply: Maintaining a high level of security of supply in an increasingly interconnected and renewable-dominated system requires sophisticated control systems and backup infrastructure, all of which contribute to network costs.

How Do Electricity Network Charges Affect Your Bill?

Electricity network charges typically constitute a significant portion of your overall electricity bill, often ranging from 25% to 40% of the total.

While the unit rate for the electricity you consume might fluctuate with market prices and your chosen tariff, network charges are a more stable, regulated component.

On your bill, these charges typically appear within the “standing charge” or as separate line items such as "TUoS" and "DUoS" charges.

They are generally applied as a fixed daily charge and/or a charge per unit of electricity (kWh) consumed, depending on your tariff and customer category.

Fixed Daily Charge: This covers the basic cost of being connected to the network, regardless of how much electricity you use.
Volume-Based Charge: A portion of the network charge might also be applied per unit of electricity consumed, meaning the more electricity you use, the higher this part of your network charge will be.

Understanding these charges is crucial because they are a non-negotiable part of your bill, dictated by regulatory bodies and necessary for a functioning electricity system.

While you can't directly reduce the network charge rates, being aware of them helps you understand the full cost components of your electricity supply.

How Can I Lower My Electricity Bill?

To counteract rising electricity charges and other costs, focus on reducing your overall energy consumption.

Small changes in habits can lead to significant savings over time:

Lowering Electricity Bills
Mind Your Appliances: One of the biggest drains on electricity is appliances. Use your washing machine and dishwasher with full loads and at lower temperatures, as up to 80% of their energy use is for heating water. Similarly, avoid using a tumble dryer and instead air-dry clothes on a clothesline or drying rack. When using your oven, try to batch-cook meals to make the most of the heat. Consider using a microwave or an air fryer for smaller meals, as they are more energy-efficient than a full-size oven.
Target "Phantom" Energy Use: Many electronics and appliances, like TVs, game consoles, and phone chargers, continue to draw power even when they're turned off and in standby mode. To prevent this, unplug devices or use power strips that you can switch off at the wall.
Improve Your Home's Efficiency: Making your home more energy-efficient will reduce the amount of electricity needed for heating and cooling. Insulate your attic and walls to prevent heat from escaping. Seal any drafts around windows and doors with weatherstripping or caulk. Consider upgrading to energy-efficient LED bulbs, which use significantly less electricity and have a longer lifespan than traditional bulbs. You can also install smart thermostats to more effectively control your heating and cooling.
Adopt Smart Habits: Small behavioral changes can have a big impact. Only boil the amount of water you need in the kettle, and take shorter showers instead of baths, as heating water is a major energy expense. If you have a smart meter, take advantage of off-peak electricity plans by running appliances like your washing machine at night when rates are cheaper. Lastly, always turn off the lights when you leave a room.

Learn More About Energy Saving Our energy guide articles contain lots of useful information on saving energy, lowering costs and how to have a more positive impact on the environment.

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By Cormac Breen

Content Manager