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HOUSEHOLDS ARE SET to face another increase in their electricity bills from October after the energy regulator approved higher network charges to fund upgrades to Ireland’s electricity grid.

The Commission for Regulation of Utilities (CRU) today confirmed electricity network charges will increase by around €41.25 a year for a typical domestic customer from 1 October, equivalent to about €3.44 a month.

The regulator said the increase is needed to support continued investment in the electricity network, including infrastructure required to meet growing demand, improve security of supply and connect more renewable energy projects.

The increase will be slightly offset by a 66% reduction in the Public Service Obligation (PSO) levy, which funds renewable energy support schemes.

From October, the monthly PSO levy for a typical household will fall to 51 cent, down from €1.59.

The CRU said it had approved lower revenue allowances than those sought by ESB Networks and EirGrid, reducing the utilities’ combined request by €138 million.

It said this means the increase facing households is around €13 lower than it would have been had the companies’ proposals been approved in full.

The approved revenue will fund continued investment in Ireland’s electricity network, with up to €18 billion due to be invested over the next five years.

Daragh Cassidy, Head of Communications at price comparison website Bonkers.ie, said the latest increase follows network charge rises of around €30 last year and more than €100 the year before.

“Today’s decision by the CRU to approve another increase in network charges won’t be welcomed by consumers but it was largely expected as our electricity grid requires billions in investment over the coming years to cope with the demands of a rapidly growing population, an increase in the number of data centres, the electrification of the wider economy, and to help finance the transition towards Net Zero,” Cassidy said.

Cassidy warned that further increases in network charges are expected in the coming years and said households could also face higher electricity prices if suppliers pass on rising wholesale energy costs.

“Wholesale costs have also risen in recent weeks, with prices year to date around 17% higher than last year. So we may unfortunately see bills go up again towards the end of the year,” he said.

Separately, Wind Energy Ireland welcomed the reduction in the PSO levy, saying figures published by the CRU show renewable energy projects will return more than €27 million to consumers over the next year.

CRU chairperson Fergal Mulligan said the regulator had sought to minimise the impact on customers while ensuring investment in the electricity network continued.

“At a time when affordability remains a significant concern for electricity customers, the CRU’s role is to protect customers by ensuring that the costs reflected in bills are necessary, efficient and justified,” Mulligan said.

“We have sought to balance the investment needed in a safe, reliable, and resilient electricity network with the impact on customers.”

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