Dáil debates
Wednesday, 3 December 2025
Energy Costs: Statements
8:40 am
Pádraig O'Sullivan (Cork North-Central, Fianna Fail)
Energy is not just a commodity; it is the lifeblood of every home and business in Ireland. While the worst of the global energy shock may have passed, its legacy remains deeply felt in Irish households. Rising bills have eroded disposable income, pushed more families into arrears and amplified the sense of insecurity that began during the pandemic and worsened with the war in Ukraine. It is not an abstract problem. When parents are rationing heating or skipping meals to keep the lights on, we are failing in our duty to protect the most basic standard of living. That is why we must look at the figures with honesty, acknowledge what has been done and commit to more work that needs to be done. The current situation is grim for some. Despite some stabilisation, Ireland still ranks among the most expensive countries in Europe for electricity. The average household now pays 36.34 cent per kilowatt hour, compared to EU average closer to 28 cent. This translates into an annual bill of €1,817, roughly €350 more than European norm.
Energy inflation has slowed but it has not disappeared. Prices have risen again by 3.3% this year, keeping pressure on household budgets. Behind these percentages are real people. Some 176,000 households are now over 90 days in arrears, with an average debt of €500 per account. That means thousands of families are living under the constant threat of disconnection. It is not just about electricity. Gas prices remain volatile, and network charges account for nearly one third of every bill, at over €500 annually to costs. These structural factors make Ireland uniquely vulnerable and unless addressed they will keep energy poverty entrenched.
The Government has done some good work and made some positive steps, including the electricity credits. We had two credits of €125, totalling €250, which were applied to domestic electricity accounts last winter, benefitting over 2 million households. Since 2022 with the energy action poverty plan, emergency schemes have delivered €1,450 worth of credits to households at a cost of €3.3 billion. Regarding home energy upgrades, there has been record funding of €469 million for retrofitting and solar PV in budget 2025, including €240 million for the warmer homes scheme, which provides free upgrades to low-budget households. The fuel allowance will be increased to €38 per week from January. I also note the VAT reduction to 9% on heat pumps, which will help to make efficient heating more affordable. These measures have helped but they are short term relief.
The structural problems remain. These include Ireland's dispersed housing, high network costs and reliance on imported energy, which keeps bills stubbornly high. We can and need to do more. We need to accelerate energy efficiency, expand the retrofitting schemes and simplify application processes. We need to reform market structures, review the network charges and capacity payments to ensure fairness. We need to target support for vulnerable households, move beyond universal credits to income-based supports and flexible payment plans.
Finally, we must future-proof affordability by investing in renewables and storage to break the link with volatile global gas prices. The Government's commitment to 80% of electricity from renewable sources by 2030 is welcome but delivery must accelerate.
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