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Households pay 250 euros more for electricity than the EU average

Compared to the EU average, households in this country pay 250 euros more for their electricity every year.

Electricity prices in Ireland are 26 per cent above the EU average and are the fourth most expensive in the bloc.

Only Germany, Denmark and Belgium are more expensive, according to Eurostat figures.

According to calculations by Bonkers.ie based on the Eurostat report, consumers here pay 254 euros more per year for their electricity than the European average.

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However, the report does not capture the full extent of the energy crisis, as the figures were collected well before the Ukraine war broke out and many suppliers hiked their prices again earlier this year.

Households here have to pay €800 more in electricity costs each year due to recent price increases. The high cost of electricity comes despite the fact that there are around a dozen providers in the housing market.

The Eurostat report also shows that Ireland is the 8th most expensive household gas in the EU. However, gas prices are practically in line with the EU average, according to the European Statistics Agency.

Bonkers.ie’s Daragh Cassidy said electricity in Ireland costs 29.74 cents per kilowatt hour (kWh) when VAT and levies are included. The EU average is 23.69 cents per kWh.

Mr Cassidy said: “Nothing is ever really cheap in Ireland. Whether food, drink, transport or rent, the price for everything here seems to be above the EU average.

“And according to the latest figures from Eurostat, the EU’s statistical office, we can also add electricity to the list.”

Prices are lowest in Hungary, Bulgaria and Croatia.

Mr Cassidy said taxes are not the main reason energy prices are above the EU average here.

“Believe it or not, energy is one of the few products where Irish consumers are taxed relatively lightly compared to the EU average,” he said.

Government taxes and duties such as VAT and the PSO (Public Service Obligation) account for about 20 percent of the final price paid by consumers in this country. This compares to an average of about 36 percent in Europe, Mr. Cassidy said.

After deduction of state taxes and duties, the electricity prices of the suppliers here are the most expensive in the EU.

Mr Cassidy said the net price of electricity is 60 per cent above the EU average after taxes and levies are deducted.

“This would suggest that there are huge inefficiencies in electricity generation in Ireland which frankly should be investigated by the Government and the CRU [the Commission for the Regulation of Utilities],” he said.

The CRU said there are several reasons why electricity is expensive in this country. Compared to other countries, there is a lack of domestic fuels available for production.

Ireland is on the periphery of Europe which increases gas costs and there are high grid investment costs to power a dispersed population and taxes. The CRU said that when prices are high, it’s even more important to make sure you have the cheapest deal available.

https://www.independent.ie/news/households-pay-250-more-for-electricity-than-the-eu-average-41632673.html Households pay 250 euros more for electricity than the EU average

Fry Electronics Team

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