Wondering what is the cost of supplying Irish electricity 'out of line' with Europe? Irish households are paying some of the highest electricity prices on the continent, and despite government efforts like temporary VAT reductions, the real issues remain unresolved.
Network charges, supplier complaints, and billing issues continue to push up costs, leaving consumers frustrated. In this blog, we'll look at why electricity is so expensive in Ireland and what needs to change to bring prices in line with Europe.
What is the Cost of Supplying Irish Electricity 'Out of Line' with Europe?
The Irish Solar Energy Association (ISEA) has criticised Ireland’s electricity prices, calling them “outrageously out of line” with the rest of Europe. The group argues that the government's VAT reductions do little to fix the real reasons behind these high costs.
ISEA, which promotes solar energy as a key renewable resource, warns that network charges—a major reason for high electricity bills—are being ignored, causing further harm to consumers.
What Are Network Charges?
Network charges are the costs of transporting electricity from power plants to homes. ISEA Chief Executive Conall Bolger explains: “These charges are entirely within Irish control. While wholesale electricity prices have gone up, there is much more to energy costs than just VAT.”
Despite Ireland having some of the highest energy prices in Europe, little has been done to address these domestic costs. Bolger believes that too much focus is placed on VAT and the PSO levy, which he describes as distractions.
“In normal times, for every €1 a household spends on VAT and the PSO levy, nearly €2 goes towards network charges—the cost of delivering electricity to homes,” he said.
Network charges are set by the Commission for the Regulation of Utilities (CRU), a state body. ISEA argues that these charges must be reviewed, as they are far higher than in other European countries.
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Is the Cost of Renewable Energy in Ireland Too High?
Ireland is also paying far more for solar energy than other European nations. Bolger highlights that Ireland pays €73 per unit of solar power, while Spain pays just €32.
“Irish solar operators face unreasonable costs, with network charges reaching €26 per unit just to put energy on the grid,” he said. “This is a major reason for our high electricity prices.”
Renewable energy should protect consumers from global energy price spikes, but excessive network charges prevent this from happening. Bolger argues that these unnecessary costs mean Irish people pay far more than they should for renewable energy.
He also pointed out that network charges may not be a “headline issue” for the government, but reviewing them could have a huge impact on lowering costs for consumers.
Bolger also criticised short-term government measures, such as VAT reductions and electricity bill credits, saying they fail to tackle the real cause of high energy costs. “Neither will change the factors actually driving up prices,” he said.
Is the Number of Energy Supplier Complaints on the Rise?
New figures reveal that nearly one-third of customer complaints against energy suppliers were upheld by the regulator last year.
The Commission for the Regulation of Utilities (CRU), which oversees energy companies and Irish Water, called 2021 “a challenging year” due to rising global energy costs and the impact of Covid-19.
The CRU dealt with 66,087 cases in 2021, a 51% increase from the previous year. However, only 3% were complex complaints that required a full CRU investigation, though these cases rose by 10% compared to 2020.
In total, the CRU closed 186 complex complaints against energy suppliers, with 32% ruled in favour of customers.
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What Are the Most Common Complaints?
Billing issues remained the biggest reason for complaints, making up 50% of all cases. Common problems included:
- Incorrect bills
- Catch-up bills (when suppliers charge for previous underbilling)
- Unexpected charges
- Tariff disputes
Other complaints involved account issues, poor customer service, and metering problems. Additionally, 5% of complaints related to misleading marketing and sign-up issues.
Which Suppliers Had the Most Complaints?
Complaints against the nine largest energy suppliers were generally in line with their market share, with two exceptions:
- Electric Ireland, which has a 43% market share, accounted for just 19% of complaints.
- Bord Gas Energy, which holds 21% of the market, had a shocking 28% share of complaints—far higher than expected.
These numbers show that many Irish households are struggling with poor service, billing problems, and a lack of transparency from energy suppliers.
Take Action for Energy Market Reform!
With rising energy costs and increasing complaints, it is clear that Ireland’s energy market needs urgent reform.
The government must focus on reducing network charges, improving billing transparency, and holding suppliers accountable for poor service. Strengthening regulatory oversight and making energy pricing fairer will help ease the financial strain on consumers.
Conclusion
Ireland’s electricity costs remain far higher than the European average, mainly due to high network charges, supplier complaints, and billing issues. So, what is the cost of supplying Irish electricity 'out of line' with Europe?
The answer lies in urgent regulatory reforms, fairer pricing, and better oversight of network charges and energy suppliers. Until these issues are tackled, Irish households will continue to pay far more than they should for electricity.
It's time for real change. Consumers deserve fair pricing, better service, and a more transparent energy system.
Take the step today—partner with Going Solar and take control of your energy future, reduce your reliance on expensive grids, and contribute to a more sustainable environment.
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