Electricity bills are set to rise next year as customers help fund a major overhaul of Ireland’s national power grid, a project that could cost almost €19 billion over five years.
The Commission for Regulation of Utilities (CRU) has approved an initial €13.8bn investment by ESB Networks and EirGrid, which operates the national transmission system. If both bodies meet strict performance targets, the regulator will permit total spending to increase to €18.9bn.
From next year, electricity users will see an added charge of €1 per month (before VAT) on their bills. This could rise to €1.75 per month if the higher spending level is approved.
Households will cover 55% of the cost, with businesses paying the remaining 45%.
Network charges already account for around 25–30% of the average electricity bill.
The investment is designed to support Ireland’s rapidly growing electricity demand and will enable:
300,000 new homes by 2030
One million electric vehicles
680,000 heat pumps
Electrification of public transport, including MetroLink and expanded electric bus networks
The grid will also be strengthened against climate change and extreme weather, while accommodating much higher levels of wind and solar power.
€3.5bn from the State
€4–5bn raised on the bond market
The programme includes 520 separate capital projects, such as:
29 major transmission projects
27 large distribution substations
80,000 pole replacements
Hundreds of kilometres of new overhead and underground lines
Minister for Energy Darragh O’Brien described the programme as “the largest investment in the electricity grid since rural electrification.”
Minister for Finance Simon Harris acknowledged the pressure on household bills but said the long-term benefit would be significant, stating the “prize” is a secure, resilient energy system that will deliver cheaper electricity in the future. He also pointed to recent budget measures and expanded eligibility for the fuel allowance.
There are currently nearly 300,000 electricity customers in arrears, and no one-off energy credits were included in October’s Budget.
According to the Central Statistics Office, electricity prices have risen by 5% over the past year.
CRU Commissioner Fergal Mulligan urged consumers to shop around, saying:
“Changing supplier is one of the fastest and most effective ways for customers to lower their energy bills.”
He added that households switching to the lowest available tariffs could have saved “almost €2,500 over the past four years,” and encouraged the use of Time of Use tariffs for customers with smart meters.
Speaking on RTÉ’s Morning Ireland, Mr Mulligan compared the scale of the project to the construction of the Ardnacrusha power station over a century ago, saying:
“The demand on our network is growing exponentially.”
ESB Networks said the investment builds on recent progress, including:
186,000 new connections
2.1 GW of renewable generation added
1.8 million smart meters installed
Managing Director Nicholas Tarrant said the decision “endorses the scale of ambition” in ESB Networks’ plans and will help deliver “a more resilient, reliable and sustainable energy future for Ireland.”
