Energy operators propose investment of up to €18.98bn to maintain networks

RTÉ News​

2 days ago

The operators of Ireland's energy system, ESB Networks and Eirgrid, have proposed an investment of up to €18.98 billion over the next five years to maintain and upgrade their networks to meet current and future demand.
Such an investment, if approved by the Commission for Regulation of Utilities (CRU), would add up to €16 to customers' electricity bills each year from 2026.
However, the CRU is proposing an initial €14.1 billion funding package across both companies over the five-year period (2026-2030) that would see at least €6 added annually to bills.
This figure could be increased to €18.08 billion based on ESB Networks and Eirgrid meeting annual delivery targets.
The CRU is now consulting with stakeholders on the regulatory and financial framework that will support these investments. It will make a final decision later this year, with the new investment plan and costs starting from January 2026.
It published the details today as part of the Draft Determination on Price Review 6 (PR6), through which the CRU evaluates and approves the proposed investment plans submitted by the network companies to upgrade the electricity grid and associated infrastructure.
The regulator said the proposed investment will deliver secure, reliable, and resilient networks and supplies, and empower customers through a more digital, flexible energy system with better customer services.
PR6 deliverables will include the connection of housing, delivery of priority projects unlocking additional generation capacity, new offshore wind infrastructure capability, enabling delivery of electric vehicles, and the investment needed for a storm-resilient and smarter grid.
The CRU said Ireland is going through "an unprecedented change in our use and demand for electricity and significant investment is required to ensure that Ireland has a high-quality network that supports the current growth in demand.
"The network must also facilitate the move away from fossil fuels to cleaner energy and deliver a range of measures, such as microgeneration, electric vehicles, electrification of heat, and other services, that will provide a more sustainable use for our electricity network," it added.
Commissioner at the CRU Fergal Mulligan said, "we realise that these significant investments may lead to increases in consumer bills in the short term and, given the financial pressures that many households currently face, network companies must keep the cost of moving to cleaner energy as low as possible for customers.
"In terms of the cost to the consumer of this investment, it will be assessed on a year-by-year basis," he added.
"But, as a guide, over the five years we expect the average annual increase to be between €6 and €16, however, this will depend on a number of factors, including the level of delivery by the network operators and how suppliers choose to recover network costs," he said.
Daragh Cassidy from comparison site Bonkers.ie said the latest price review by the CRU "really underlines the scale of investment and work that's needed in our grid over the coming years.
"The demands of a rapidly growing population, an increase in the number of data centres, the electrification of the wider economy, and the transition towards Net Zero all present various challenges, and of course costs - which have to be paid for somehow," he said.
"A large part of our grid is also aging and many poles and wires need to be replaced or put underground. And this costs money too," he added.
"While the potential €6 to €16 a year increase in household bills may not be welcomed by consumers, it's moderate in the overall scheme of things.
"Bottlenecks in our electricity grid are now impacting on our housing delivery as well our ability to achieve our climate targets, which are among the biggest issues facing the country right now. So you could argue this is a price worth paying if it helps solve them," he added.
"In the meantime, the current price review still has one year to run. In August the CRU will announce whether to increase grid fees for the 2025 to 2026 year. Last year it approved a hike that equated to an increase of just over €100 a year to consumers' bills, but it's expected to be much lower this year," he said.
According to the CRU, the most recent Estimated Annual Bill (EAB) for electricity customers was €1,802 (as of April 2025), with network tariffs representing around 20-30% of that figure.
Suppliers determine what level of these charges that they either absorb or pass onto their customers.
Mr Cassidy added that "if the wholesale cost of electricity, which makes up around half of the price we pay for our electricity, were to fall substantially this might cancel out any increase in grid fees over the coming months and years.
"So we may not necessarily see an increase in consumers' bills. And with electricity prices in Ireland still around 70 to 80% above where they were before the war in Ukraine broke out, you'd hope this is the case," he added.