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Irish Times
a day ago
- Business
- Irish Times
EirGrid says average home pays €9.75 per-month for its services as it pitches investment plan
National electricity grid operator EirGrid says the average home pays €9.75 a-month for its services in a plan seeking go-ahead to invest in its system. Regulators are proposing to allow EirGrid and fellow State company ESB Networks invest an initial €14.1 billion over the next five years to overhaul the systems that bring electricity from power stations to more than two million customers. Eirgrid's submission to the Commission for the Regulation of Utilities (CRU) calculates that it could need between €4 billion and €7.6 billion to expand the electricity grid to meet growing demand and take on more renewables, among other things. The company calculates that its operations amount to €117 a-year, €9.75 a-month, from the total average household electricity bill, which it estimates at slightly more than €1,900, including VAT. READ MORE That comes to around 6 per cent of what Irish families pay every year for electricity, according to its figures. EirGrid and ESB Networks combined sought the CRU's backing for investment plans totalling €19 billion from next year to 2030. The commission said this week it would allow them €14.1 billion initially, but could increase this up to €19 billion should both companies show that they are meeting targets and budgets. This could cost the average customer from €6 to €16 a-year extra for electricity, the CRU calculates. Michael Behan, Eirgrid's chief financial officer argued on Thursday that the review of its spending plans was an opportunity to invest in the Republic's future. 'Investment in our grid infrastructure and the capacity and capability of EirGrid to fulfil its critical role is fundamental to unlocking greater energy independence and security, as well as supporting national and regional economic growth,' he said. Its plans include updating existing power lines, putting in new overhead and underground lines, upgrading existing substations and building new ones. The CRU has allocated EirGrid €2.6 billion of the €14.1 total allowed to the two companies. The commission intends monitoring their progress, only allowing them exceed the initial investment that it has approved if they show they are meeting targets and keeping their plans on track. EirGrid and ESB Networks sought approval for the investment in a process dubbed 'Price Review 6″. Both will have to increase their charges to help pay for their expansion plans, adding to customers' bills. Households and businesses cover network costs through a standing charge on their bills that is separate from the actual cost of their electricity.
Irish Independent
a day ago
- Business
- Irish Independent
Customer bills will rise to fund €18bn upgrade of Ireland's power grid, but there's confusion over how much hikes will be
There is confusion, however, over how much customer bills will rise to help fund the spending. The huge investment would pay for strengthening networks to cope with extreme events like Storm Éowyn and allow for the connection of tens of thousands of new homes and businesses. It would boost capacity for the expansion of electric vehicles and heat pumps and prepare the grid to carry power from planned offshore windfarms. It would cover the cost of 70 new or updated substations, 50,000 pole replacements, over 300km of underground cables and more than 1,000km of new or upgraded overhead lines. Network tariffs – part of the charges that make up customer bills – will rise to raise the funds but it is not clear by how much. The Commission for Regulation of Utilities (CRU), which proposes to sign off on the five-year plan, says it should only add between €6 and €16 to the average annual bill. However, ESB Networks which, with EirGrid, put the plan together, estimated that it would add €83 to an average annual bill. Full details of the five-year plan are to be published today and put out for public consultation for 10 weeks after which the CRU will make its final decision. However, the regulator has proposed allowing ESB Networks and EirGrid to go ahead with almost all the projects they submitted. The two bodies jointly sought approval for an €18.98bn spending plan for 2026-2030. The CRU has approved €14.1bn at the outset but says the figure can be increased to €18.1bn before 2030 so long as projects are being delivered as promised and on time. At the lower figure, the CRU says it has calculated the impact on customer bills to be around €6 per year, rising to €16 if the higher figure is reached. The spending plan, called Price Review 6 (PR6), is triple the spend of the last five years, and the CRU acknowledged it was a huge increase. It said Ireland was going through an unprecedented change in the use and demand for electricity, and significant investment was required to ensure the network was up to the task. 'The investment by ESBN and EirGrid in our energy infrastructure is crucial to ensure Ireland can accelerate its move to a cleaner and more secure supply of energy as we progress to 2030,' Fergal Mulligan, CRU commissioner, said. Mr Mulligan said costs to the consumer would be monitored annually. 'We realise that these significant investments may lead to increases in consumer bills in the short term,' Mr Mulligan said. '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.' The CRU said customers should shop around for the most suitable tariffs for their needs which could minimise the impact of any increased charges that suppliers may pass on to them.
Irish Times
2 days ago
- Business
- Irish Times
Consumers to face higher electricity costs amid networks investment
Homes and businesses face electricity bill increases of up to €16 a year if regulators approve State companies' plans to spend billions boosting the Republic's power networks. National electricity grid operator EirGrid and ESB Networks are seeking the Commission for Regulation of Utilities ' (CRU) approval to spend €19 billion over five years overhauling the systems that transmit electricity from power plants and distribute it to more than two million customers. The CRU proposes approving total spending of €14.1 billion up to 2030, but will allow scope for increases to €19 billion, depending on the progress each company makes with its plans. Fergal Mulligan, CRU commissioner, calculates that the average electricity bill will rise by €6 to €16 a year up to 2030 as a result, but cautions that this will depend on what the companies ultimately build and 'how suppliers chose to recover network costs'. READ MORE The increases will apply to network costs, which most customers pay as a standing charge on their bills, and not to electricity itself, whose cost will vary over the period. Network charges account for about 30 per cent of the €1,733 a year that the average customer pays for electricity. Mr Mulligan acknowledged that EirGrid's and ESB Networks' plans would increase customers' bills at a time when many families face financial pressure. 'In terms of the cost to the consumer of this investment, it will be assessed on a year-by-year basis,' he pledged. The CRU is seeking responses from the public and interested parties starting today. It proposes allowing the companies exceed their allowances only if progress shows them meeting their targets. It will monitor this closely over the five-year period. EirGrid and ESB Networks plea that the system needs investment to facilitate new power stations and the wind and solar farms needed to ensure the State hits climate targets. Their plans include the connection of the 300,000 new homes the Government hopes will be built by 2030, along with new businesses and services. The total allows €890 million for a 'storm resilience programme' meant to apply the lessons learned following January's Storm Éowyn , which left many homes without power for long periods. Regulators agree with the need for investment but caution that the companies most be accountable for spending and progress. EirGrid is responsible for the national grid, which transmits electricity from power stations around the country, while ESB Networks owns the lines that distribute electricity to each customer. The CRU will allocate €11.5 billion to the networks company while EirGrid will get €2.6 billion. The regulator is responding to submissions from both under a process called Price Review 6, which covers the 2026 to 2030 period. The companies plan more than 360 projects, including 29 major undertakings. They will involve 300km of underground cables and 1,000km overhead, lines connecting offshore wind and tying the Republic to Europe.
RTÉ News
2 days ago
- Business
- RTÉ News
Energy operators propose investment of up to €18.98bn to maintain networks
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 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.
Irish Times
3 days ago
- Business
- Irish Times
Intel set to cut close to 200 staff in Ireland and how to save for school fees
Almost 200 mandatory redundancies are expected this autumn at the Intel plant in Leixlip, Co Kildare, according to people briefed on the situation. The company is undergoing a major restructuring at the moment but it is understood that the plant, where almost 5,000 people are employed, will remain central to the company's operations. Pat Leahy, Jack Horgan Jones and Ciara O'Brien report. The volume of retail sales fell by 0.6 per cent in May, as consumer spending in department stores along with food, beverage and tobacco feeling the largest decline. As Hugh Dooley reports, Despite the monthly drop, retail sales volume still advanced 1.6 per cent in the past 12 months , according to the latest data from the Central Statistics Office. Government spending will need to increase by about €265 billion over the next 25 years to pay for an ageing population, more housing and cutting emissions, Central Bank governor Gabriel Makhlouf has said, as he called for a credible spending rule to help prevent future downturns. Dublin Bus paid its chief executive Billy Hann €276,000 in total last year, new figures from the State-owned public transport company show. Barry O'Halloran has the details. READ MORE ESB Networks is seeking an increase of up to €1.60 a-week over five years from families to help pay for expansion that includes the cost of connecting 300,000 new homes to the electricity system. Barry O'Halloran reports. Stena Line is to cancel its three-day Rosslare-Cherbourg service, the company said on Monday. The last sailing will depart Cherbourg on September 29th, arriving in Rosslare on September 30th. The ferry operator said the decision was made following a strategic route review. Colin Gleeson has the story. Cantillon assesses where the Intel layoffs leaves the chipmaker's Irish operation, while also noting the latest bad news for the Irish whiskey industry. LinkedIn has appointed a new country manager to lead its Irish business, with Cara O'Leary stepping into the role. Ciara O'Brien has the story. In Your Money, Dominic Coyle answers a reader query on how to approach Revenue about a modest, but long standing tax debt . It may be mid-summer, but for some the cost of school is already front and centre with bills for school fees for the coming year already due. Fiona Reddan looks at how much fees are, and how to save for them. When news started to shift to the web in the late 1990s and early 2000s, there was great optimism that such a leap in technology would allow for new ways of reporting stories. It's clear that hasn't really happened since. In his column, Hugh Linehan asks why. Dublin City Council has given the green light to British developer Summix for a nine storey student accommodation block on the former site of the Independent Newspapers HQ on Middle Abbey Street in Dublin. Gordon Deegan reports. If you'd like to read more about the issues that affect your finances try signing up to On the Money , the weekly newsletter from our personal finance team, which will be issued every Friday to Irish Times subscribers.
