Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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428. To ask the Minister for Enterprise, Trade and Employment the assessment that has been made of the impact of Ireland’s high household electricity costs on competitiveness, given that household costs often influence wage demands and business operating costs. [48839/25]

Peter Burke (Longford-Westmeath, Fine Gael)
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According to the CSO’s Consumer Price Index – electricity accounts for 3.4% of household expenditure. While electricity costs are a factor in broader inflationary pressures, they are only one item in a broad array of products. Ultimately, it is that broader rate of inflation - reflecting all consumer prices, which influences wage demands. In August 2025 the annual rate of consumer price inflation stood at 2.0% - which is in line with the European Central Bank’s target for price stability.

High household electricity costs are reflective of high Irish energy (and electricity) costs more broadly across both Irish households and businesses. It is this wholesale energy cost which is a more significant factor in determining our national competitiveness position. Our relatively high energy and electricity costs in comparison to the rest of the EU have negatively impacted on Ireland’s competitiveness.

The recently published Action Plan on Competitiveness and Productivity sets out a number of actions in relation to high energy costs under the theme of ‘Growing Sustainable Irish Businesses and Boosting Regional Development’. Priority actions include the implementation of a Private Wires Framework, conducting a review of electricity network tariffs, examining the scope to support energy intensive industry and utilising the Environmental Aid Scheme to the fullest extent in providing capital support grants to high impact decarbonisation projects.

The government remains clear that the primary action to reduce our electricity costs and enhance our energy competitiveness is to continue to expand the supply of renewable energy infrastructure. This will ensure a clean and secure supply of electricity to Irish households and businesses.

Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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429. To ask the Minister for Enterprise, Trade and Employment whether the high price of electricity is a factor in deterring inward investment or encouraging emigration, particularly in the technology and manufacturing sectors. [48840/25]

Peter Burke (Longford-Westmeath, Fine Gael)
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There are may factors that influence inward investment decisions. In some sectors input costs such as energy will form part of those considerations. Competition for highly-mobile FDI is high, and as a country we need to continually to develop and strengthen our value proposition, including issues such as the cost of electricity. I am particularly conscious of these cost considerations in the current business environment, and have made the competitiveness of our business environment a central focus for this Government.

That is why I published the Action Plan on Competitiveness and Productivity, with the Taoiseach, on 10th September. It includes a range of measures to address energy costs and infrastructure constraints – including actions on Private Wire legislation, for CRU to our review our electricity network tariff regime. The Action Plan also informs the work of the newly established National Energy Affordability Taskforce (NEAT). My officials are engaged with that Taskforce to ensure that our economic competitiveness is central to energy policy decisions and I am engaging with Minister O’Brien to explore what further levers we have to mitigate electricity costs in particular. I intend to rigorously monitor implementation of all actions in the plan.

It is important to recognise that, overall, Ireland’s value proposition continues to be very strong, and this is evidenced by the significant and substantial ongoing investments being made. In 2024, IDA Ireland recorded record employment levels with 1,830 client companies employing 302,355 individuals directly, including 165,484 roles based in regional locations. Collectively, these companies contributed €48.6 billion to the Irish economy, with €8.9 billion allocated to research, development, and innovation activities. Investment continues to be strong in 2025, as reflected in the announcement of 179 new projects by IDA Ireland during the first half of 2025, which are expected to create more than 10,000 jobs—over half of which will be situated in regional areas.

When selecting a location for investment, companies consider numerous factors. These include the availability of talent and skills, the presence of industry clusters and supportive ecosystems, strong research and innovation capabilities, a proven track-record for conducting business, and access to European and international markets. Ireland continues to stand out as a sustainable and stable location with over 70 years of success in attracting multinational corporations.

Where people choose to live and work, and rates of emigration, are similarly a range of highly complex and multifaceted decisions. A direct causal connection with electricity prices would be difficult to establish.