Wholesale electricity prices in Ireland fell by more than 16% in the year to September, marking another significant decline in energy costs at the supply level, according to the latest data released by the Central Statistics Office (CSO).
The CSO reported that electricity prices dropped by 2% between August and September and are now 75.6% lower than their peak in August 2022, when global energy markets were severely disrupted following the surge in fossil fuel prices linked to the war in Ukraine.
Despite this steady decline in wholesale prices, most major energy companies in Ireland have announced price increases for consumers in recent months. The disconnect between falling supplier costs and rising retail bills has raised questions about pricing practices across the sector.
A recent report by the International Energy Agency (IEA) highlighted this disparity, noting that Irish households are paying some of the highest retail energy prices relative to wholesale costs in the world. According to the IEA, energy retail prices in Ireland are roughly three times higher than wholesale prices, one of the widest margins globally.
While the drop in wholesale electricity costs offers some optimism for future price relief, analysts warn that the impact may take time to reach consumers due to long-term pricing contracts and hedging arrangements used by suppliers.
The CSO’s latest figures also provided insights into broader producer price trends across the manufacturing and food industries. Overall, the Producer Price Index for manufacturing industries declined by 0.4% in September, reflecting a general easing of inflationary pressures.
Producer prices for products sold on the domestic market were 1.2% higher than a year ago, while prices for exports fell by 3.1%, reaching their lowest level since October 2021. Overall producer prices declined by 2.6% in the 12 months to September 2025.
In the food sector, prices showed mixed trends. Producer prices for food products fell slightly by 0.2% from August but were 4.5% higher compared to September 2024. Dairy products saw the sharpest annual increase, jumping 11.1%, followed by meat and meat products, which rose by 7.1%.
The sustained fall in wholesale electricity prices, combined with easing producer costs, suggests inflationary pressures in the energy and manufacturing sectors may continue to moderate. However, the persistence of high retail energy prices remains a concern for households and businesses alike.
