Price EUR paying for electric is appalling
»Irish rates are fourth highest on the continent »Consumers owe 26% more than average
ELECTRICITY prices in Ireland remain among the highest in the EU as energy costs increase sharply with consumers paying 26% more than average.
New figures published by the European Commission show electricity prices in the Republic at the end of 2021 were the fourth highest among the 27 countries in bloc.
Average electricity costs for Irish households were up nearly 14% compared to 2020.
Increases for electricity across the EU were 11% last year, although price rises of around 50% were recorded in some countries including Estonia and Sweden.
Households in Ireland were paying €29.74 per 100 kilowatt hours in December 2021 following substantial increases in wholesale electricity prices, while the EU average was €23.69.
The cost just 12 months earlier in the Republic was €26.16 per 100 kwh.
Taxes and levies account for 19% of electricity charges in Ireland – nearly half the average EU rate.
The only countries with higher electricity charges are Denmark (€34.48), Germany (€32.34) and Belgium (€29.94).
The lowest electricity charges are found in Hungary where consumers pay just €10.00 per 100 kwh.
The figures show household electricity prices rose in all countries apart from Slovakia and Hungary, where prices are regulated, in the second half of last year.
Meanwhile, gas prices in Ireland are more in line with EU norms with Ireland the eighth most expensive country for household gas in 2021.
The cost of gas for Irish households rose by an average of 12% last year, according to the Eurostat figures.
Average gas prices for domestic consumers in the Republic were €7.80 per 100 kwh at the end of 2021 – the same as the EU average – although the cost dipped to €6.20 at one stage before a sharp spike in prices during the second half of the year.
Increases in gas prices were recorded in 20 of the 24 EU member states which use natural gas supplies.
Gas prices are most expensive in Sweden at €18.60 per 100 kwh and cheapest in Hungary at €3.10.
The European Commission said the increases in both electricity and gas prices were largely driven by energy and supply costs “caused by severe economic factors.” Energy costs are set to increase further this year following an increase in the carbon tax from Sunday which will add around €93 to annual household gas bills.
In addition, significant double-digit price hikes from Electric Ireland, SSE Airtricity and Panda on the cost of both electricity and gas also took effect from May 1, reflecting the upward pressure on energy costs following the outbreak of war in Ukraine.
Customers of Electric Ireland, one of the largest energy providers, are facing a 22% increase in electricity bills and a 25% increase in gas bills.
However, the rising costs will be partially offset by a temporary reduction in the VAT rate on electricity and gas bills from 13.5% to 9% which will last until the end of October.
Daragh Cassidy from price comparison website Bonkers.ie said the timing of the VAT reduction was “a bit peculiar”.
He added: “The reduction will come into effect when energy demand in the home usually begins to plummet, while it will go back up when it begins to increase again.”