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Irish Electricity Prices Rank 8th Highest in Europe in 2024
🇮🇪 Ireland /Economy & Trade

Irish Electricity Prices Rank 8th Highest in Europe in 2024

From RTÉ News · (2d ago) English Critical tone

Translated from English, summarized and contextualized by DistantNews.

TLDR

  • Irish electricity prices ranked as the eighth most expensive in Europe in 2024, according to research by the Economic and Social Research Institute (ESRI).
  • Government interventions like VAT reductions and energy credits helped shield consumers, preventing prices from becoming the highest on the continent.
  • Rising network costs, intended to fund emergency electricity generation and future investments, are contributing to the high prices, with further increases predicted by 2029-2030.

Ireland's electricity prices have landed it in the unenviable position of eighth most expensive in Europe for 2024, a stark reality highlighted by recent research from the Economic and Social Research Institute (ESRI). While government measures, including VAT reductions and energy credits, have provided some relief to consumers, they were not enough to prevent Ireland from facing some of the highest electricity costs across the continent during the 2018–2024 period.

While interventions such as energy credits have alleviated much of the burden for Irish consumers, Irish electricity prices have been among the most expensive in Europe during the 2018–2024 period of analysis.

— Dr Muireann LynchExplaining the impact of government interventions on Irish electricity prices.

The ESRI's findings point to a significant factor driving these elevated prices: the increasing network costs borne by consumers. These costs are essential for funding the purchase of emergency electricity generation and are set to rise further to accommodate future network investments. The Commission for Regulation of Utilities has predicted that annual costs could increase by between €59 to €106 by 2029 and 2030, adding to the financial burden on households and businesses.

The ESRI said that network costs paid by consumers had risen in recent years to pay for the purchase of emergency electricity generation.

— ESRIIdentifying network costs as a driver of high electricity prices.

A key reason for Ireland's vulnerability to high electricity prices is its continued reliance on gas-fired generation. While many European nations have diversified their energy sources, Ireland has been less able to reduce its dependence on gas. This reliance makes the country's electricity prices more susceptible to fluctuations in natural gas prices, unlike countries that benefit from greater protection against fuel price volatility through renewables. The ESRI's research underscores the need for Ireland to accelerate its transition to renewable energy sources to mitigate these price pressures and ensure greater energy security.

It said that future network investments would also increase costs to consumers.

— ESRIForecasting future increases in electricity costs due to network investments.
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Originally published by RTÉ News in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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