Electricity in Ireland costs 26% more than the rest of Europe - Newstalk

Image audio

A recent energy report by Eurostat revealed that electricity prices in Ireland are 26% higher than the EU average

This means that average Irish households are paying €254 more than their EU counterparts for their electricity.

Head of Communications at, Daragh Cassidy, appeared on Newstalk to explain why. 

Listen to the full interview above or read the transcript below for the full explanation. 

32% of Ireland's electricity came from wind in April 2022, so why are we paying more? 

Electricity, like everything in Europe and Ireland, is taxed by the Government, which adds to the national cost of living.   

In fact, Ireland taxes electricity lower than the EU average. 

Before the Government adds on tax, Ireland's electricity is around 60% more expensive than the EU average.  

This suggests that the Irish electricity market is inefficient. 

With that being said, there are ways that homeowners can ease this impact and pay less tax

Another factor is that we’re an island, so we have additional transport costs for everything.

We do, however, have our own small gas field for national supply, which is dwindling.

There’s also the fact that we have a largely dispersed population, which means getting the infrastructure built to get electricity to those homes is costly. 

Why do other island countries not have the same issues with energy prices?

We’re significantly above the average EU energy price when you include VAT, and when you exclude VAT we’re way above the average net price. 

So even with the Government cutting the cost of VAT on energy bills, it’s still quite high. 

Only Denmark, Germany, and Belgium are more expensive than Ireland for electricity. 

Denmark is a lot cheaper when you look at the net price, despite the fact that it’s similar to Ireland in that it uses a lot of green energy in the form of wind, and it’s practically an island location. 

However, even with the similar use of renewable energy, Denmark may be better located in that they’re connected to mainland Europe and its grids. 

Ireland is connected to the UK, so we can import electricity from the UK when we need to, and we’re also working on building a connection with France. 

If we can establish a French connection that may bring prices down further as we’ll be able to import more electricity when we need to.

Nuclear energy may be another reason for higher prices.

Ireland doesn't use nuclear energy, but the likes of France, Sweden and other countries do, and so they benefit from the reduced electricity costs it brings. 

What should be done? 

There’s a variety of reasons why our electricity prices are higher than in Europe, and an investigation might possibly need to be done, as it’s the consumer who pays. 

As we said, we’re paying an extra €254 per year for our electricity compared to our EU neighbours. 

That’s on top of the second-highest mortgage rates in Europe, record rents, and high broadband costs as well. 

Start saving on your energy bills

If you're looking to save on your energy costs, take a look at these 15 ways to use less electricity and save money

Of course, there's always the option of switching energy suppliers too for your gas and electricity.

Our free, gas and electricity comparison tool makes finding the best energy deal easy. 

There are even more deals available for your broadband, insurance and banking needs on 

Start cutting costs and saving money today with 

Become a master electricity saver

We’ve written a few helpful guides that will help you to cut the cost of your energy bills: 

Keep up to date with our latest energy blogs and guides

Take a look at our other radio interviews

You can view our full range of radio and TV appearances here.

Get in touch

You can always find us on Facebook, Twitter or Instagram. We’re ready to answer any questions you have.
Compare, Switch, Save is a trading style of Bonkers Money Ltd. registered office Nutley Building, Nutley Lane, Dublin 4. Registered in Ireland, company number 477742. Our logo and the word bonkers® are registered trademarks of Bonkers Money Limited and may not be used or reproduced without prior written permission. Bonkers Money Limited, trading as, is regulated by the Central Bank of Ireland.

Commission for Regulation of UtilitiesGuaranteed Irish