Irish households and businesses will face higher electricity bills next year to fund a major upgrade to the national grid, which could cost almost €19 billion, the Commission for Regulation of Utilities (CRU) has confirmed.
The regulator approved an initial €13.8 billion of increased spending by ESB Networks and EirGrid, the body managing the electricity network. If the companies meet regulatory targets, spending could rise to €18.9 billion over five years. This would initially add €1 per month to bills before VAT, potentially rising to €1.75 if the full increase is approved. Domestic users will cover 55% of the costs, with businesses paying the remaining 45%. Network tariffs currently make up 25% to 30% of an average electricity bill.
The upgrade will prepare the grid for future energy demands, including the connection of 300,000 new homes by 2030, one million electric vehicles, and 680,000 heat pumps. It will also support the electrification of public transport projects such as Dublin’s MetroLink and the expansion of electric bus networks. The grid will be reinforced to handle greater contributions from wind and solar power and to withstand climate-related challenges, including storms.
Minister for Energy Darragh O’Brien described the plan as “the largest investment in the electricity grid since rural electrification,” while Minister for Finance Simon Harris said households would pay more in the short term, but the investment would deliver “an energy supply that is resilient and one that will lead to cheaper energy in the future.” Funding will come from a combination of state investment, totaling €3.5 billion, and €4 billion to €5 billion raised on the bond market.
The programme involves 520 capital projects, including 29 major transmission upgrades, 27 distribution substations, 80,000 pole replacements, and hundreds of kilometres of overhead and underground lines.
Social Democrats TD Jennifer Whitmore warned that rising bills were “really concerning” and urged the government to introduce targeted support for low-income households. She called for a €400 grant for the 40% of households with the lowest income during the energy crisis.
The CRU said it will closely monitor ESB Networks and EirGrid to ensure customers’ money is spent responsibly. Commissioner Fergal Mulligan encouraged households to shop around for lower tariffs or use smart meters to take advantage of Time of Use rates. “Changing supplier is one of the fastest and most effective ways for customers to lower their energy bills,” he said, noting customers could have saved almost €2,500 over the past four years by switching.
ESB Networks Managing Director Nicholas Tarrant said the upgrade would “help pave the way for a more resilient, reliable and sustainable energy future for Ireland, supporting housing, jobs and climate action.” EirGrid’s interim Chief Infrastructure Officer Siobhán O’Shea added that the investment is “critical to ensure we have a clean, secure power system that supports increasing societal and economic growth.”
