Irish householders’ electricity bills soar above EU average
IRISH households are paying some of the highest energy bills in Europe despite the country being a leading producer of renewable energy, new research has found.
The average annual energy bill is around €1,100 a year, more than €200 above the EU average, according to Bonkers.ie.
Figures from EU statistics agency Eurostat revealed that households here are paying the fourth highest electricity prices in the EU.
Despite Ireland producing a large amount of renewable wind energy, much of its electricity still comes from gas and coal-fired power stations.
At 26.16 cent per kWh including VAT and charges, prices in Ireland are 23% above the EU average, and trail behind only Germany, Denmark and Belgium. This means the average customer here is paying an extra €202 a year above the EU average. And when you look at the net price of electricity – excluding taxes and charges such as VAT and environmental levies – prices in Ireland are actually the most expensive in the bloc at 70% above than the EU average.
Prices are lowest in Bulgaria (9.82 cent per kWh), Hungary (10.09 cent per kWh) and Estonia (12.91 cent per kWh).
While taxes and environmental charges such as VAT and the PSO levy make up around 20% of the final price paid for electricity by consumers in Ireland, it’s almost 40% more than the average in Europe – an increase from 31% in 2008.
Although wind is free, the cost of building the infrastructure and turbines to harvest it is expensive and has to be invested before any power comes onstream.
Daragh Cassidy, spokesman for switching site Bonkers.ie, said: ‘Given the increase in wind generation in Ireland over the past few years, it’s disappointing that electricity prices haven’t fallen and continue to remain way above the EU average.
‘However, what’s more concerning is the net price of electricity here, which is way out of line with the rest of Europe.
This is important for the Government to remember, as if it embarks on increasing taxes and levies on electricity to bring us into line with the EU average or to try meet environmental goals, consumers could be faced with astronomical bills.’
Mr Cassidy added: ‘As many of us still remain working and studying from home, heating and electricity costs are understandably a concern for many people. My advice to anyone who is looking for better value or who is struggling with their energy bills is to look at switching supplier.
‘There are huge discounts available to those who switch with prices as low as around 14 cent per kWh on offer for an entire year. This would make your electricity about the ninth cheapest in the EU – on a par with Latvia.
‘It’s quick and easy to switch and can all be done online in the space of a few minutes and will save the average customer over €400 a year.’ He also said Ireland ‘has some of the highest prices as around half of our electricity comes from gas and coal-fired power stations’, adding: ‘The fuels are not cheap and have to be imported. Ireland’s low population density makes the power grid very expensive to run. In Ireland you have a lot of isolated houses, holiday homes and people living in the country which all need to be connected. It’s not like London were you have a few lines serving tens of thousands.
‘In Ireland, those lines are built to serve a few homes.’
The report showed Ireland has the eighth most expensive gas in the EU, with prices in line with the bloc average.
‘The fuels are not cheap’