WARNING: Energy bills in Ireland are predicted to remain high throughout 2025
Energy bills in Ireland are predicted to remain high throughout 2025, even if wholesale gas and electricity prices decrease. While energy providers have lowered prices several times in the past year, bills remain significantly higher than pre-pandemic and pre-Ukraine war levels. Ireland currently has the second-highest energy costs in Europe, with electricity costing €355 more annually than the EU average, and combined gas and electricity bills exceeding the EU average by €500.
Several factors may contribute to the energy prices remaining high and even increasing in 2025:
- While a planned VAT increase on electricity and gas from 9% to 13.5% may not happen, if it were to take effect, it would add around €70 and €60 to annual electricity and gas bills, respectively.
- The carbon tax increase next May will add another €20 to the average gas bill.
- Increased grid fees, which added €60 to the average gas bill and over €100 to the average electricity bill in 2024, could rise again, limiting suppliers' ability to lower prices even if wholesale costs decrease.
Electricity prices are tied to natural gas charges throughout Europe and Russia supplied up to 40% of European demand for natural gas before it invaded Ukraine.
But your energy bills don’t have to be another victim of the war.
You could potentially offset price increases by switching to a cheap plan. Check out our current Electricity and Gas offers and see if you can save.
Source: Irish Examiner: Households face rising energy bills despite falling wholesale prices (1 Jan 2025)