Household electricity bills to rise from October following increased network charges

Household electricity bills are set to rise from October after the national utilities regulator approved increased network charges intended to “deliver critical new infrastructure” needed in Ireland’s electricity grid.The revenue generated by this increase will fund “ESBN and EirGrid’s ongoing investment to upgrade Ireland electricity network,” the Commission for Regulation of Utilities said in a statement.This will “support renewable generation, offshore grid development and improving security of supply and resilience,” it added. The revenue falls €138 million short of what the two energy providers had initially requested, the Commission confirmed, as the regulator gained “final allowances resulting in a lower customer impact than originally proposed”.READ MOREThe estimated increase in household monthly electricity bills, “for a typical domestic customer”, amounts to €3.44, adding up to €41.25 in total between October 1st, 2026 September 30th, 2027.This “is around €13 less than if the network companies’ request had been approved in full,” the commission pointed out, which it says reflects a “review of the costs to ensure customers pay only for necessary and justified investment”.“Network costs are one element of the overall customer bill and represent circa 30 per cent of an end user’s overall cost of energy to the home,” the regulator continued.It said it “reviewed the expenditure in line with its annual regulatory process, supporting the recovery of investment costs in a fair and transparent way for its customers.”The increase in network charge coincides with a 66 per cent reduction in the Public Service Obligation (PSO) Levy, a mandatory charge on electricity bills that funds sustainable energy projects. This will see a decrease from a monthly flat fee of €1.59 for residential users to €0.51, the regulatory body confirmed. “Our decisions have limited the increase to end users to the greatest extent possible while ensuring the necessary investment in our energy network continues at pace,” Fergal Mulligan, the Commission’s chairman, said.“We have sought to balance the investment needed in a safe, reliable and resilient electricity network with the impact on customers,” he continued.The commission “ensures that renewable energy support schemes are funded transparently, efficiently and in the interest of customers,” he said.