Electricity prices here affected by buying power - EAI

The CEO of the Electricity Association of Ireland, Dara Lynott, said today that Ireland's electricity prices are affected by buying power, due to market size, and the country's reliance on gas in particular.

Figures from the EU's statistical agency Eurostat yesterday showed that Ireland had the highest household electricity prices in the European Union in the second half of last year.

Electricity in Ireland cost 40.42 cent per kilowatt-hour (including VAT and levies), which was nearly 40% above the EU average of 28.96 cent.

Speaking on RTÉ's Morning Ireland, Mr Lynott explained that Eurostat would say that prices are different in every country, adding that every country has different supply and demand as well as different energy mixes and different regulatory costs.

"And that's no different from Ireland. Ireland was the highest in the last section of 2025. It was about 1.5 cents a kWh larger than Germany. But when you bring in the purchasing power that Ireland has, it drops to about fifth most expensive," Mr Lynott said.

"But that is the not great news for people who are struggling with bills," he added.

He said there are particular reasons why Irish electricity is higher, including the fact that we are using about 50% of our electricity generation from gas that is traded on the energy markets.

"We have a huge ambition to move to renewables. That means building wind energy offshore and onshore. We have to build a grid to connect about 100,000 houses and we have to make sure that the lights stay on. And that means making sure there is temporary emergency generation when it is needed," he stated.

Mr Lynott said that with the increase of use of renewables for energy, customers are already "sporadically" see the benefits.

"To give an example, on March 20 when we had a lot of wind, the electricity wholesale price dropped to about 60% of the average. The more renewables you build, the more days that wind will have a huge impact and reduce the price," he explained.

Mr Lynott said the country still has a lot of onshore renewables to build, as well as a lot of offshore renewables.

"It really needs to pick up, because the faster we get to that goal of 80% of our energy being made from renewables, the more days of the year that we will have cheaper electricity," he stated.

In relation to grid fees being roughly a third of the average bill, Mr Lynott said that suppliers are "a collector of funds for the entire electricity system".

"That means 90% of what goes on your bill is passed by suppliers over to the likes of ESB Networks, to Government in terms of taxes, and then to foreign fuel suppliers, for example, gas", he said.

Mr Lynott pointed out that energy companies need to make profits in order to stay in business.

"But these companies, unlike a lot of other companies, are investing over $2 billion a year to build these renewable offshore and onshore farms to put in the batteries that are needed," he said.

"So that's €2 billion every year right through to 2030, which is going to hasten the transition from fossil fuel dependency, where we are now, to renewables, where we want to be," he said.

He also urged customers to try to get the best rates that suit their energy needs.

"I think it's as simple as picking up your phone and saying to your supplier, I think I can get a better rate from you. Here is my usage. I have a smart meter. Look at my usage for the last two months. Give me the best rate," he advised.

He added that there are 2.1 million smart meters in place but only 30% have been activated.