Irish households are paying more for electricity even as wholesale prices — the cost energy suppliers pay to buy power — continue to fall sharply, raising serious questions about pricing practices in the energy sector.
According to new data from the Central Statistics Office (CSO), wholesale electricity prices fell by more than 16% in the year to September. Between August and September alone, prices dropped by a further 2%, and are now 75.6% lower than their peak in August 2022. Despite this steep decline, several major electricity providers have introduced fresh price hikes this month, with some households seeing increases of 10% or more.
Energy suppliers attribute the hikes to higher network and system operator charges, known as grid fees, which fund maintenance and expansion of Ireland’s national electricity grid. These fees account for roughly one-third of an electricity bill and have risen since October after the Commission for Regulation of Utilities (CRU) approved a new round of grid investment, adding about €29 annually to the average customer’s bill.
However, critics argue that these increases do not justify the size of recent price hikes, particularly when wholesale prices have fallen so dramatically. The International Energy Agency (IEA) recently reported that Irish retail electricity prices are three times higher than wholesale prices — one of the largest gaps in the world.
The IEA also found that Ireland’s electricity costs rank among the highest in the European Union, fuelling public frustration as energy companies report healthy profits. SSE Airtricity, which raised prices by 9.5%, reported an operating profit of €94.5 million in the year to March 2024, while its parent company SSE earned £2.42 billion (€2.78 billion). Energia, increasing its electricity prices by 12.1%, posted pre-tax profits of €154.33 million this year, and Bord Gáis Energy, owned by Centrica, reported €39 million in profits for the first half of 2025.
Meanwhile, Irish consumers are feeling the squeeze. The CRU has warned that energy arrears could “spike” this winter without government energy credits. The number of households in arrears rose by 12% between May 2024 and May 2025, and more customers are turning to charities for help with utility bills.
In response, the CRU has introduced new protections, requiring suppliers to consider a customer’s income, dependents, and other debts before setting repayment plans. A moratorium on disconnections will also be in place from 8 December 2025 to 16 January 2026, ensuring no household loses power over Christmas.
Still, as Ireland heads into winter, many families remain burdened by rising energy debt and inflated bills. With wholesale prices at record lows and company profits at record highs, pressure is mounting on regulators and suppliers alike to explain why electricity remains so costly for Irish consumers.
