Your Electricity Bill is Going Up: The Massive €19bn Reason for Ireland's Latest Price Hike
The Commission for Regulation of Utilities (CRU) has today finalised a landmark investment plan that will see up to €18.9 billion poured into Ireland’s electricity grid over the next five years. While the upgrade aims to future-proof the network, it comes with a catch for consumers: household electricity bills are set to rise by up to €1.75 per month to fund the project.
CRU Finalises €18.9bn 'Price Review 6' for Ireland's Energy Grid
The CRU, Ireland's independent energy regulator, officially published its Final Determination on "Price Review 6" (PR6) today, December 16, 2025.
This regulatory framework dictates the spending of EirGrid and ESB Networks from 2026 through 2030.
The CRU will monitor ESBN and EirGrid's delivery to ensure customers' money is spent responsibly and that improvements are made to build a resilient and fit for purpose electricity grid now and beyond 2030.
The plan approves a baseline investment of €13.8 billion, which can scale up to nearly €19 billion if the grid operators meet specific delivery targets. The regulator confirmed that the cost of this "historic" infrastructure project will be partially passed through to consumers via network charges.
For the average domestic customer, this means a bill increase of approximately €1.00 per month for baseline delivery, rising to €1.75 per month (€21 per year) if the higher investment ceiling is reached.
The announcement comes at a sensitive time for the government, which has recently approved a €3.5 billion equity injection into the state’s energy companies to prevent even steeper price hikes for households.
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What Will the €19 Billion Upgrade Actually Deliver?
The primary driver behind this unprecedented spending is the Climate Action Plan and the need to modernise an ageing grid that is currently struggling to keep pace with demand from housing and industry.
The PR6 framework outlines several critical infrastructure targets that must be achieved by 2030:
- New Housing Connections: Facilitating the connection of up to 300,000 new homes to the national grid.
- Electrification of Transport: Upgrading local substations to support 1 million electric vehicles (EVs) and the roll-out of Metro North.
- Renewable Integration: Strengthening "storm resilience" and building the capacity to carry power from new offshore wind farms and 680,000 residential heat pumps.
To ensure value for money, the CRU has introduced 36 delivery obligations and 26 financial penalties. If ESB Networks or EirGrid fail to hit these milestones, they will face significant fines rather than being allowed to pass costs onto the public.
How Will This Affect Your Monthly Electricity Bill?
The most immediate impact is that standing charges—the fixed cost of being connected to the grid—are likely to remain high or increase slightly regardless of how much energy you use.
While wholesale energy prices (the cost of the electricity itself) have fluctuated recently, the network component of the bill is now trending upward to pay for these long-term capital projects.
Beginning in late 2025/early 2026, your bill will reflect:
- Increased Network Charges (€1.00 - €1.75 monthly increase)
- A reduced PSO Levy (to help offset grid costs)
- Variable wholesale generation costs
- 9% VAT (Standard Rate)
Ireland Electricity Unit Price Components
Critics of the plan argue that even a small monthly increase adds to the cost-of-living pressure on vulnerable households.
However, the CRU maintains that without this investment, Ireland risks frequent blackouts and an inability to meet its carbon reduction targets.
What Can I Do About Rising Grid Charges?
While you cannot opt-out of national network charges, Selectra recommends taking the following steps to ensure you aren't paying more than necessary on the other components of your bill:
| Strategy | What It Involves | Potential Benefits |
|---|---|---|
| Switch for Discounts | Compare providers to find the highest "New Customer" discount (currently up to 30-40%). | Can save the average household over €400 per year, easily offsetting the €21 grid fee. |
| Smart Meter Tariffs | Switch to a Time-of-Use tariff if you have a smart meter. | Lower rates for running appliances at night or during "Free Saturday" offers. |
| Monitor the PSO Levy | Check your bill for the PSO Levy reduction, which is set to partially offset these grid upgrades. | Ensures you are receiving the government-mandated credits correctly. |
| Upgrade Efficiency | Apply for SEAI grants for insulation or solar panels. | Reduces the amount of electricity you need to buy from the grid entirely. |
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