Beatrice Lang
Electric Ireland announced a price increase of 26.7% for residential electricity bills and 37.5% for gas bills, effective from 1 October 2022. This was due to unprecedented increases in international energy market prices, which impacted wholesale gas prices. The average electricity bill in Ireland has been steadily increasing, and as of September 2025, it stands at €1,817.12 per year, including VAT and other charges. The average price per unit is 34.63c per kWh. Ireland's energy suppliers often increase prices due to rising wholesale gas and electricity costs or increased network charges. To assist customers, Electric Ireland offers a range of solutions, including flexible payment plans, a €3 million Hardship Fund, and payment holidays.
| Characteristics | Values |
|---|---|
| Date of price increase | 1st October 2022 |
| Percentage increase in electricity bills | 26.7% |
| Percentage increase in gas bills | 37.5% |
| Average increase in residential electricity bill | €37.20 per month |
| Average increase in residential gas bill | €42.99 per month |
| Average annual electricity bill in Ireland | €1,755.55 |
| Average annual gas bill in Ireland | €1,482.13 |
| Average household energy bill in Ireland | €3,237.68 |
| VAT on energy prices | 9% |
| Carbon Tax | €20 per tonne |
| PSO Levy | €0 |
| Factors influencing price increases | Increased wholesale gas and electricity prices, increased network charges, increased PSO Levy, increased VAT rate, increased Carbon Tax rate |
| Support for customers | Electric Ireland Hardship Fund (€3 million), flexible payment plans, payment holidays, PAYG meters, energy-saving tips |
| Average price of electricity in Ireland (September 2025) | 34.63c per kWh |
| Cheapest electricity provider in Ireland (September 2025) | Community Power (28.80c per kWh including VAT) |
| Average estimated electricity bill in Ireland (September 2025) | €1,817.12 including VAT and other charges |
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What You'll Learn
Electric Ireland price change history
Electric Ireland has a history of offering support to its customers during challenging times. In March 2021, they announced a €2 million Hardship Fund to aid customers facing financial difficulties in paying their bills due to the Covid pandemic and increasing energy costs. Additionally, in December 2020, Electric Ireland provided €1 million in support to 10,000 registered vulnerable customers through Christmas credits.
In June 2022, Electric Ireland introduced a €3 million Hardship Fund to assist customers struggling with bill payments during the winter months and beyond. The fund is administered by the Society of St Vincent de Paul and MABS (Money Advice and Budgeting Service), who help assess customer needs and facilitate applications.
On September 1, 2022, Electric Ireland announced plans to increase residential electricity bills by 26.7% and gas bills by 37.5%, effective October 1, 2022. This decision was attributed to unprecedented surges in international energy market prices, particularly wholesale gas prices, which had increased by over 700% in the preceding 12 months.
To help customers cope with these challenging times, Electric Ireland offers various solutions, including flexible payment plans, payment holidays, PAYG meters, and insights from Smart Meters. They also encourage customers facing difficulties to reach out and work with them to find manageable payment options.
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Factors influencing price increases
Several factors influence price increases in the electricity market. One of the most significant drivers of electricity prices is the cost of fuel, particularly natural gas, which is the most commonly used fuel for power plants. When natural gas prices rise, electricity prices tend to follow suit. This dynamic is driven by the basic economic principle of supply and demand: as demand for a commodity like natural gas increases, its price also rises, and vice versa.
Weather conditions and seasonal changes also play a crucial role in electricity pricing. Extreme temperatures, whether hot or cold, can lead to increased demand for heating or cooling, which in turn drives up fuel and electricity prices. Summer is typically the season with the highest electricity prices due to increased demand, particularly during peak hours in the afternoon and early evening.
The availability of power generation and distribution infrastructure is another factor. When demand outpaces the capacity of existing power plants, additional generation plants may be required, increasing costs. Issues with the power grid, such as damage or the need for expansion, can also limit the amount of power available to consumers and impact prices.
Other factors include the cost of building and maintaining power plants, local fuel costs, and regulations. In some cases, government decisions to increase taxes or levies on energy can also lead to price increases for consumers. For example, in Ireland, increases in wholesale gas and electricity prices or network charges have historically led to higher prices for households.
It is worth noting that electricity prices can fluctuate from minute to minute, and most consumers pay rates based on seasonal averages or demand. However, these various factors ultimately influence the overall trend in electricity prices, impacting consumers' monthly and annual energy expenses.
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Customer support initiatives
Electric Ireland has put in place several customer support initiatives to help its customers navigate financial difficulties and uncertainty. Here are some of the key initiatives:
- Hardship Fund: Electric Ireland established a €3 million Hardship Fund in June 2022 to assist customers facing challenges in paying their bills. This fund is administered in collaboration with the Society of St Vincent de Paul (SVP) and the Money Advice and Budgeting Service (MABS), who help assess customer needs and facilitate applications. The fund provides credits to eligible customers' electricity or gas accounts.
- Manageable Payment Plans: Electric Ireland encourages customers facing payment difficulties to engage with them. They offer to work with customers to establish manageable payment plans, including flexible payment options and payment holidays. They also provide support to Fuel Poor customers through the Household Budget Scheme or Industry Solution Prepayment Meter, along with a 5% discount.
- Smart Meter Plans: Electric Ireland offers smart meter plans that provide customers with insights into their energy usage, helping them make informed decisions to control their energy costs.
- Enduring Discounts: Electric Ireland provides enduring discounts of up to 8.5% for Dual Fuel customers and up to 5.5% for electricity or gas customers. These discounts do not disappear after a year, offering long-term savings.
- Equaliser Product: The Equaliser product allows customers to spread their energy costs evenly across the year, helping to manage cash flow and providing a more consistent payment structure.
- Business Support Hub: Electric Ireland offers a Business Support Hub that provides resources to help businesses understand their energy bills, energy usage, and energy costs. This hub offers quick guides to deciphering the costs and details in electricity and gas bills, as well as advice on keeping bills up-to-date through meter readings.
- Online Support: Electric Ireland offers an online support platform where customers can access energy-saving tips and advice. This includes information on how to optimise energy usage and reduce costs.
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Average electricity prices in Ireland
Electricity prices in Ireland are made up of unit rates, standing charges, the PSO levy, and VAT. The unit rates are set by suppliers and are charged based on how much electricity you use. Standing charges are also set by suppliers and are charged daily. The Value-Added Tax (VAT) and Carbon Tax are set by the Irish Government. The Public Service Obligation (PSO) Levy is set by the Commission for the Regulation of Utilities (CRU) and is used to subsidise renewable energy generation and peat-burning power plants in Ireland.
Electricity prices in Ireland have been steadily rising year-on-year over the last decade before seeing a large spike in 2022. In 2022, Electric Ireland announced a 26.7% increase in residential electricity bills due to unprecedented increases in international energy market prices. The average annual electricity bill in Ireland is €1,755.55, based on the national average electricity usage of 4,200 kWh per year. However, this average can vary depending on factors such as the size of the household, the efficiency of appliances, and the number of electrical devices in the home.
In September 2025, the average price of electricity per unit in Ireland was 34.63c to 35.14c per kWh, depending on the source. This price is based on a standard, 24-hour urban rate comparing all providers, with VAT included. The average estimated annual electricity bill in Ireland for this period was €1,817.12, including VAT and other charges.
The PSO Levy for 2024/25 increased from zero to €3.23 (excluding VAT) per month, or €38.76 per year for households. The VAT on electricity was temporarily reduced from 13.5% to 9% from May 1, 2022, and this reduction is set to continue until the end of October 2025. The rate of carbon tax for petrol and diesel was increased from €56 to €63.50 per tonne in October 2024, and this increase will apply to all other fuels from August 2025.
While energy prices in Ireland fell in 2024, they are expected to rise again in 2025. The Commission for Regulation of Utilities (CRU) announced that regulated network charges will increase by an average of €101 per annum for residential electricity customers. Suppliers sometimes cut prices to reward existing customers and attract new ones, so shopping around for the best deal can help keep costs down.
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Cheapest electricity providers in Ireland
Electricity prices in Ireland are determined by unit rates, standing charges, the Public Service Obligation (PSO) Levy, and VAT. Unit rates and standing charges are set by suppliers and are charged based on energy consumption and meter configurations, respectively. The PSO Levy, VAT, and Carbon Tax are set by the Irish Government. As of my last update in September 2025, the PSO Levy stands at €0.
Electric Ireland, one of Ireland's energy suppliers, announced an increase in residential electricity bills by 26.7% effective from the 1st of October 2022. This was attributed to unprecedented increases in international energy market prices, particularly wholesale gas prices, which had risen by over 700% in the preceding 12 months.
To find the cheapest electricity provider in Ireland, it is recommended to use a comparison website accredited by the Commission for Regulation of Utilities (CRU). Switcher.ie is one such website, allowing users to compare tariffs from all Irish electricity suppliers and find the best plan.
One of the electricity suppliers in Ireland is Energia, which offers savings of up to €410 with its electricity plans. Their plans include flexible smart plans with real-time energy tracking and a standard plan with straightforward pricing. They also provide a Smart Data Plan, an EV Smart Drive Plan, and a flat-rate plan.
It is worth noting that before switching suppliers, it is important to ensure that you are out of contract with your current supplier to avoid early exit fees. Additionally, to benefit from lower prices, it is advisable to arrange for your energy switch to occur as soon as your current plan ends.
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Frequently asked questions
Electric Ireland announced on September 1, 2022, that prices would increase from October 1, 2022.
Residential electricity bills increased by 26.7%, and gas bills by 37.5%. This equates to €37.20 more per month for electricity and €42.99 more per month for gas.
The price rise was due to unprecedented increases in international energy market prices, which impacted wholesale gas prices.
Electric Ireland offers a range of solutions, including flexible payment plans, payment holidays, and a €3 million Hardship Fund administered by SVP and MABS.
