Written answer
Electricity Generation
119. Deputy John Lahart asked the Minister for Climate, Energy and the Environment the reason the electricity charges in Ireland are considered out-of-kilter compared to European counterparts; and if he will make a statement on the matter. [47085/26]
Comment on this
Energy affordability is a top priority for Government, as evidenced by the Programme for Government commitments in this regard and by the ongoing emphasis on key workstreams across my Department and in other Government Departments.
Retail prices are influenced by several factors including wholesale energy prices, system operation costs and supplier hedging. The latest data from Eurostat shows that, in nominal terms, Ireland ranked highest for electricity prices among European countries in the second half of 2025. When adjusting for purchasing power parity, in terms of energy affordability Ireland has the fifth highest electricity prices and eighth highest gas prices (below the EU average for gas) among European countries.
The Government is deeply aware and concerned about the pressures placed on households and businesses by high energy costs. We are taking action to help households and businesses with these costs. That is why, on 12 April, the Government agreed a €500 million package of fuel supports. This was in addition to the initial €250 million in targeted supports announced in March, which was already among the largest (per capita) intervention of any EU Member State. These packages were announced following significant engagement with industry representatives.
A range of measures in Budget 2026 also supported households with energy costs, including:
• an extension until 2030 of the 9% VAT rate currently applied to gas and electricity bills;
• enhanced social protection payments including an increase to the Fuel Allowance rate and an expansion in the eligibility rules; as well as
• a record allocation of €640 million for Sustainable Energy Authority of Ireland (SEAI) retrofit schemes.
Since 2019, capital expenditure of over €1.8 billion has delivered over 268,000 home energy upgrades, including over 36,300 fully-funded upgrades for households at risk of energy poverty under the Warmer Homes Scheme (to end May 2026).
A rooftop revolution is underway across Ireland. Over 112,000 homes have received solar PV grants since the scheme began. The SEAI have received over 15,000 applications for solar PV in 2026 (to the end of April). This is a 72% increase on the total applications in 2025. 99% of new housing is A-rated.
A number of protections are in place for customers experiencing difficulties in paying their bills. Anyone who is struggling with their bill is strongly encouraged to engage with their supplier. Suppliers have hardship funds and focused measures in place for any customers who find themselves in difficulty will not disconnect customers who engage with them.
It is important to note that the Department of Social Protection can also provide support through the Additional Needs Payment to help households meet expenses, including those who face difficulties with fuel bills.
The Government is also making crucial investments in renewable energy, in our electricity grid and in energy efficiency. The ongoing conflict in the Middle East underlines, once again, why we must accelerate the deployment of renewables across all sectors, and continue to invest in our grid as well as in retrofitting of homes and businesses across the country.
As Minister, I have written to retail electricity and gas suppliers, as well as fuel suppliers, to emphasise the importance of reducing the exposure for Irish consumers from the price shocks that global uncertainty can create.
Also as Minister, I will continue to engage with international and EU partners on an ongoing basis and voice the Government’s support for coordinated, EU-wide measures to address high energy prices.
The National Energy Affordability Taskforce is working intensively on an Energy Affordability Action Plan to be submitted to Government in Q3 of this year. This Action Plan will be focused on short, medium and longer-term measures to support households and businesses to meet their energy costs.