A bold concern calls for answers: electricity prices are high for households, and a formal inquiry may be necessary to uncover why. That's the takeaway energy experts will present to an Oireachtas committee.
Experts from the Economic and Social Research Institute (ESRI) will tell the committee on Wednesday that publicly available data isn’t enough to show how current prices are justified.
An ESRI briefing for the Committee on Climate, Environment and Energy notes that residential electricity bills more than doubled from 2018 to 2024. While prices have fallen from their 2023 peak, the decline has lagged behind many other European nations, and the exact reasons remain hard to pin down.
The ESRI adds that since the energy crisis sparked by the Ukraine war, the gap between wholesale prices paid by electricity suppliers and the retail prices charged to customers has widened. This pattern is seen in several European countries, but it is more pronounced in Ireland, and limited public data complicates understanding, suggesting a regulator inquiry could be warranted.
The regulator in question is the Commission for Regulation of Utilities (CRU), which is tasked with monitoring energy prices and ensuring fair practices by electricity suppliers. The CRU is not set to attend the committee meeting on energy affordability, though officials from the Department of Climate, Environment and Energy will appear.
Ahead of the session, Sinn Féin’s Pa Daly indicated he would press for clarity on what information the CRU had provided before October’s budget when energy credits meant to help with bills were scrapped.
CRU data released in November showed arrears among households reaching record highs just as new price increases were announced, prompting Daly to question whether the government knew these figures during budget discussions in October. He criticized the decision to withdraw energy credits as deeply irresponsible given the year’s greater need.
The ESRI will argue that energy credits are a more effective way to ease bills for struggling households than broad price-reducing measures such as VAT cuts, which tend to advantage wealthier households that use more electricity. The institute contends that targeted supports are preferable, proposing measures like a dedicated energy credit for eligible households or an electricity bill adjustment. Such targeted support may require collaboration across several government departments and agencies.
The committee hearing will also feature representatives from the Society of St Vincent de Paul, Irish Rural Link, Friends of the Earth, and EnergyCloud, who will provide additional perspectives on affordability and policy options.
Would you support a shift toward targeted energy assistance rather than universal price cuts, and what data would you require to back such a move? Also, should the CRU be more proactive in sharing pricing data with lawmakers to foster transparency across the sector?
