Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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141. To ask the Minister for Environment, Community and Local Government the breakdown of electricity costs in Ireland by generation, transmission, distribution, and taxes/levies; and how these compare with the European Union average. [48834/25]

Darragh O'Brien (Dublin Fingal East, Fianna Fail)
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The electricity and gas retail markets in Ireland operate within a European Union regulatory regime wherein electricity and gas markets are commercial and liberalised. Operating within this overall EU framework, responsibility for the regulation of the electricity and gas markets, including the matters raised by the Deputy, is solely a matter for the independent regulator, Commission for Regulation of Utilities (CRU). In line with long standing policy on deregulating price setting, CRU ended its regulation of retail prices in the electricity market in 2011, and in the gas market in 2014.

Price setting by electricity suppliers, including standing charges, is a commercial and operational matter for the companies concerned. Each such company has its own different approach to pricing decisions over time, in accordance with factors such as their overall company strategic direction and developments in their cost base. Within a competitive environment, providers also have costs such as staffing, tax, infrastructure, and cost of network tariffs which, in turn, affects end users’ bills.

The weighted market average for Estimated Annual Bills (EABs) currently stands at (July 2025) €1,802 for electricity. When comparing prices across countries using Purchasing Power Indices (PPIs), which adjust for national price levels and better reflect economic affordability, Ireland ranks as the eighth most expensive due to its overall high price levels. This adjustment helps eliminate distortions that arise when nominal prices are compared without considering the overall price levels of a country. Accordingly, Eurostat data, for H2 2024, ranks Ireland as 14th amongst EU countries for network costs, 31st for taxes, fees, levies and charges and 18th for VAT.

Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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142. To ask the Minister for Environment, Community and Local Government the analysis that has been undertaken to assess the impact of renewable energy penetration, grid constraints, and market design on Ireland’s retail electricity prices compared with other EU member states. [48835/25]

Darragh O'Brien (Dublin Fingal East, Fianna Fail)
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The Programme for Government 2025 reaffirms the commitment to meeting 80% of Ireland’s electricity from renewable sources, as set out in the Climate Action Plan. To deliver on this, a flexible power system is critical to align our electricity use with periods of plentiful, low-cost renewable generation. The support provided to renewables under the Government’s Renewable Electricity Support Scheme (RESS) aims to balance maximising the delivery of new renewables capacity with ensuring affordability and value for money for electricity consumers.

The RESS provides for consumer protection, whereby supported projects are required to credit monies to households and businesses when market prices exceed their RESS support price. This mechanism protects consumers by supporting investments in renewable energy at predictable prices and shielding consumers from international price volatility of imported fossil fuels.

In relation to grid constraints, PR6 will deliver on the Programme for Government priority to ensure that the necessary investment is made in the electricity grid. The National Development Plan will provide for the provision of up to €3.5 billion in additional equity to support an unprecedented investment in electricity grid infrastructure over 2026 – 2030. This equity will enable both companies to raise finance for the planned investment of up to €18.08 billion.

This investment will support the delivery of the in the electricity grid for 2026-2030 in line with the CRU PR6 draft determination published in July. This represents a step change in investment in our electricity grid infrastructure.

Regarding market design, the European Commission published legislative proposals following the Russian invasion of Ukraine looking to reform the electricity market design (EMD) and followed a public consultation initiated to better protect consumers from excessive price volatility, support their access to secure energy from clean sources, and make the market more resilient. Alongside this, the Commission also published proposals for a regulation on wholesale energy market integrity and transparency (REMIT) to provide stronger protection against market manipulation in energy trading. Both EMD and REMIT have been formally adopted and we are now focused on implementation of both packages.

Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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143. To ask the Minister for Environment, Community and Local Government if he plans to introduce price cap mechanisms or targeted relief schemes in light of Irish consumers facing the highest electricity bills in Europe. [48836/25]

Darragh O'Brien (Dublin Fingal East, Fianna Fail)
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The electricity and gas retail markets in Ireland operate within a European Union regulatory regime wherein electricity and gas markets are commercial and liberalised. Operating within this overall EU framework, responsibility for the regulation of the electricity and gas markets, including the matters raised by the Deputy, is solely a matter for the independent regulator, Commission for Regulation of Utilities (CRU). In line with long standing policy on deregulating price setting, CRU ended its regulation of retail prices in the electricity market in 2011, and in the gas market in 2014.

Price setting by electricity suppliers, including standing charges, is a commercial and operational matter for the companies concerned. Each such company has its own different approach to pricing decisions over time, in accordance with factors such as their overall company strategic direction and developments in their cost base. Within a competitive environment, providers also have costs such as staffing, tax, infrastructure, and cost of network tariffs which, in turn, affects end users’ bills.

The Government is committed to addressing high energy costs experienced by Irish consumers. The Programme for Government acknowledges the increased energy cost pressures on households and businesses and commits to bringing forward measures to help contain these costs. Government recently approved an extension of the 9% VAT rate currently applied to gas and electricity by a further six months to October 2025 at an estimated cost of €85 million.

Further measures to support Irish consumers, including targeted schemes, will be considered as part of the work programme of the National Energy Affordability Taskforce. It is expected that such measures will be considered in the Energy Affordability Action Plan which will identify, assess and implement policy options to enhance energy affordability while delivering key renewable commitments and protecting security of supply and economic stability.