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Domestic electricity bills to rise by up to €100 a year to cover network charges

Household electricity bills could be set to rise by up to €8.42 a month over the coming year.

The increase is the result of the energy regulator setting network charges for the period.

The Commission for the Regulation of Utilities (CRU) said network charges are needed to enable ongoing investment to take place in the electricity system.

There are two charges – one for the cost of building, maintaining and operating the transmission network operated by Eirgrid, and the other for the distribution system run by ESB Networks.

Each year both organisations make requests to the regulator which are then reviewed, before a decision is made on whether or not to approve additional allowances.

“EirGrid submitted a number of revenue adjustment requests for 2025 some of which the CRU approved, partially approved, and did not approve,” the CRU said in a statement.

The regulator said today that it had set the revenue requirement for the transmission system at €1.4 billion for the coming year, an increase of 38% on this year.

While for the distribution system the revenue requirement has been set at €1.1 billion, down 4.9% on this year.

When the network charge requirements and other adjustments are taken into account, the net increase being faced by domestic customers per month is €8.42.

Suppliers decide themselves as to whether to past on these charges in part, in full or not at all through standing charge on bills.

“The CRU continue to encourage customers to either renegotiate or switch supplier to find the most suitable tariffs for their needs which may minimise the impact of any charges that suppliers may pass onto their customers,” it said.

This time last year the CRU cut network charges by €6 as part of a balancing exercise resulting from the undercharging of large energy users and the resultant overcharging of domestic customers over a ten year period, to a total of €100m.

Jim Gannon, Chairperson of the Commission for Regulation of Utilities, said that Ireland is going through an unprecedented change in use and demand for electricity across all sectors.

Investment is also required to support the growth and increase in decarbonisation and measures to move away from fossil fuels.

Traditional investment and maintenance is also need to make sure that the network is resilient and ensuring an efficient supply for consumers

He said that network charges formed an element of the annual standing charge and suppliers decide the level of charges are passed on or absorbed.

On an annual basis, network companies will request investment in new wires and infrastructure, new system processes and investment in for example smart meters.

The regulator must review this with an aim to either allow, disallow or partially allow the investment.

“While there will be an increase in the annual bill, there is still significant value in the market place. If consumers do switch to smarter tariffs, they can see that reduce. We would suggest and encourage people to go to the accredited price comparison websites,” Mr Gannon said.

He added that on an annual basis, the Commission will review the performance of the organisations as well as forthcoming investment requirements, and all must be up to scratch to get approval.

He added that the Commission was acutely aware of the challenges that face consumers in recent years.

The Commission is due tomorrow to publish measures for consumers for the winter period, such as a disconnection moratorium, debt repayment for those on pay-as-you-go meters and discounted tariffs for those on hardship meters timelines for debt repayment.

He said companies were committing to the engage code, which was about making sure an actively engaging consumer will not be disconnected.

Article Source – Domestic electricity bills to rise by up to €100 a year to cover network charges – RTE

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