- Thursday 27 April 2023
Independent.ie Reports Ireland Has the Highest Electricity Prices in Europe
Source: Independent.ie
Author: Charlie Weston
The price of electricity in Ireland is the highest in Europe, according to new research that has intensified pressure on the Government to provide further support to households.
The Household Energy Price Index, commissioned by the Austrian and Hungarian energy regulators, found that Irish electricity unit prices are almost double the European average. Gas prices in Ireland are also among the most expensive in Europe.
The cost of electricity for Irish households has doubled over the past two years. The index calculates per-capita energy supports in Ireland at EUR 1,071 since September 2021, including three EUR 200 energy credits.
A major study of residential electricity prices across 33 European countries found Ireland to be the most expensive. Residential electricity prices, including taxes, ranged from 9.2c per kilowatt hour in Hungary to 49.9c in Ireland, compared with an EU average of 28.3c.
Despite a significant drop in wholesale electricity prices, Irish energy companies have yet to pass on meaningful reductions to households. Central Statistics Office figures show wholesale electricity prices fell by more than 50 per cent in the year to last month.
Energy suppliers argue that hedging contracts entered into during periods of high wholesale gas prices are limiting their ability to reduce household tariffs.
The study also found that Ireland’s household energy supports are lower than in many other European countries. Per-capita supports ranged from EUR 233 in Cyprus to EUR 3,732 in Luxembourg, with Germany ranking second at EUR 3,179.
Residential gas prices in Ireland were found to be the eighth most expensive of 28 countries surveyed, with an average cost of 16.1c per kilowatt hour compared to the EU average of 13.1c.
Energy analyst Darragh Cassidy noted that Ireland has had some of the highest electricity prices in Europe for years, even before recent global price shocks.
While factors such as Ireland’s island location, reliance on imported fossil fuels, and dispersed population contribute to higher costs, Cassidy said there are also domestic issues that warrant investigation.
At a time when household energy bills are approaching EUR 2,000 per year on average, many consumers are looking for ways to reduce costs without compromising supply.
This environment has increased interest in services such as WeSwitchU, which helps households switch energy supplier and avoid being moved onto expensive standard tariffs once introductory discounts expire.
WeSwitchU operates on a transparent model, charging customers a fee equal to 10 per cent of the savings achieved, with no commission taken from energy suppliers. This ensures its incentives are aligned with customer savings.
Switching energy supplier does not involve any wiring or meter changes, and there is no interruption to electricity or gas supply. Only the billing provider changes.
