Energy bills of Irish consumers are now typically more than €500 higher than much of the EU with the cost of domestic electricity alone about €350 more, according to fresh data.
The latest figures from Eurostat, the EU statistical agency, put electricity prices in Ireland at the second highest in the EU and almost 30 per cent above average, behind only Germany.
However, when looking at the net price of electricity before taxes have been included, Ireland has the most expensive electricity in the EU.
This is because Ireland’s VAT rate is 9 per cent compared to about 20 per cent in many other EU countries.
Gas prices, meanwhile, are the fifth-highest and more than 15 per cent above the EU average with Irish households paying €183 a year more for gas.
“Irish households have been paying electricity prices that are well above the EU average for years. So these latest figures from Eurostat aren’t surprising unfortunately,” said Daragh Cassidy of price comparison and switching site bonkers.ie.
He pointed to a “relatively small and dispersed population” and highlighted the rapid growth of the population and the increase in the number of data centres in recent years, which he said were “putting pressure on the grid”.
He said in recent years Ireland has had to procure high-cost, high-emission emergency gas generation to “plug the gap between electricity demand and supply”.
Gas generates more than 40 per cent of our electricity, while other countries rely more on cheaper hydro and nuclear power.
“Many of our power plants are also older and smaller than those in other countries so we don’t benefit from efficiencies and economies of scale as much,” Mr Cassidy said.
He was gloomy about changes in the medium term “although the interconnector we’re building with France will hopefully improve things when it comes online in 2027 as it will allow us to tap into generally cheaper French electricity”.
While energy prices in Ireland have fallen considerably over the last 12 months, they still remain significantly higher than they were before Russia invaded Ukraine in the spring of 2022 with the annual costs now about €1,000 more than they were four. years ago.
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Mr Cassidy pointed out ways people can make savings, with those who switch providers able to get discounts for the first year which would put prices on a par with Latvia and below the EU average.
People can avail of the lower-than-average prices because providers in Ireland tend to offer substantial discounts to new customers with savings of 20 per cent or more on the standard rates made available to new and switching customers.
Despite the potential savings on the table, well in excess of one million Irish households do not routinely shop around for the best value for money.
Mr Cassidy also reminded people, even those who are unwilling to switch to alternate providers that they could make savings if they had smart meters by making sure they were timing their highest energy usage for when it is least expensive.