Electricity prices to rise during transition to low carbon energy system, says regulator

CRU says €4bn to be spent redeveloping electricity transmission system in next four years.

Electricity prices will increase as the Republic bids to cut greenhouse gas emissions, regulators told politicians on Tuesday.

The news comes days after ESB subsidiary, Electric Ireland, announced a price hike likely to add €8.50 a-month to the average household bill.

Overall electricity prices “will increase during the transition” to a low-carbon energy system, Aoife MacEvilly, chairwoman of the Commission for Regulation of Utilities (CRU), confirmed to Oireachtas members.

She told the Joint Committee on Environment and Climate Action that customers themselves would have opportunities to use technology including smart meters to cut electricity consumption.

Electricity suppliers in the Republic have been increasing prices since March as wholesale charges rose on the back of increased demand and rising oil costs.

National grid operator Eirgrid, and ESB Networks will spend up to €4 billion over the next four years to redevelop the electricity transmission system to take on more renewable power, according to Ms MacEvilly.

“There is a recognition that more investment will be required in the second half of the decade,” she added.