Are Wholesale Electricity Prices Decreasing?
According to the Central Statistics Office (CSO) Wholesale Price Index, June 2025 prices were 11.6% lower than in June 2024. Most significantly, current prices stand at 75.4% below the peak recorded in December 2022, representing substantial market rebalancing.
High-consumption businesses particularly benefit from reduced operational expenses, potentially translating to competitive pricing advantages.
- June 2025 decrease: 12.2% month-on-month
- Year-over-year: 11.6% lower than June 2024
- Historic comparison: 75.4% below December 2022 peak
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Broader Energy Market Trends and Factors
The energy landscape presents mixed results:
- Overall energy fuels price index: +0.2% in June 2025
- Annual comparison: down by 9.8% compared to June 2024
- Energy Products Index: down by 9.0% since May 2025 and 11.1% lower when compared with June 2024
Contributing Factors to Price Decline
- Improved energy supply security
- Increased renewable energy contributions
- Reduced overall energy demand
December 2022 Peak Causes
- Geopolitical tensions
- Supply chain disruptions
- Post-pandemic demand rebound
What Does This Mean for My Electricity Bills?
Wholesale prices constitute around 55–60% of final electricity bills, yet direct consumer impact experiences time lag.
Additional bill components include:
- Transmission and distribution costs
- Supplier charges
- Government taxes and levies
- VAT
Electricity suppliers employ "hedging" strategies, purchasing electricity in advance at fixed prices to mitigate volatility. This means savings can take time to filter through consumer tariffs as suppliers work through existing contracts.