New analysis from the Nevin Economic Research Institute (NERI) has revealed that Irish electricity price growth has dramatically outpaced both general inflation and the energy price trajectories of almost all other EU states.
While other prices in Ireland were in line with Europe over the past decade, electricity prices underwent a massive divergence.
The report shows that between January 1996 and September 2025, Irish Electricity Prices increased fourfold, which is more than double the increase in general consumer prices during the same period.
Alongside this, while many EU states saw a rapid price decline after peaking in 2022, Irish prices did not fall to the same degree.
The research identifies an implication that Irish households pay on average €360 more per year than their European counterparts.
One reasoning for this, the report states, is the role natural gas plays in the Irish electricity system and that with a close link between wholesale electricity costs and natural gas prices, Ireland finds itself vulnerable to volatility in the gas market.
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(Release in Full)
New research reveals Irish energy costs outpacing both Inflation and EU counterparts
New analysis from the Nevin Economic Research Institute (NERI) has revealed that Irish electricity price growth has dramatically outpaced both general inflation and the energy price trajectories of almost all other EU states.
The report, Ireland’s Electricity Prices Over Time, shows that between January 1996 and September 2025, Irish electricity prices increased fourfold, more than double the increase in general consumer prices during the same period.
The research identifies Ireland as a significant “cost growth outlier” within the EU15. While general price levels in Ireland moved in relative lock-step with the Euro area for much of the last decade, electricity prices underwent a massive divergence.
In addition, while many EU states saw rapid price declines after the 2022 peak, Irish prices did not fall to the same degree. These disparities imply Irish households pay on average around €360 more per year than their European counterparts in 2025 euro prices.
A primary driver is the significant role natural gas plays in the Irish electricity system. Current market designs create a “close link” between wholesale electricity costs and natural gas prices, leaving Ireland more vulnerable to global gas market volatility.
The report recommends measures to reduce to reduce the cost, in particular by reducing the role of natural gas within the Irish generation system.
Key Findings:
- Irish electricity prices by late 2025 were 4.02 times their January 1996 levels, while no other state in the EU15 group exceeded increases of 3 times their base.
- While general Irish prices rose approximately 79.9% since 1996, electricity prices increased by over 300% in the same timeframe
- Ireland moved from having some of the cheapest electricity in the EU15 in 1990 to being one of the most expensive countries for nearly all domestic consumption bands by early 2025 in euro terms.
- In the first half of 2025, pre-VAT electricity euro prices for large-scale industrial users (150,000 MWh and above) in Ireland were 80.4% higher than the Euro area average
Commenting, research author Paul Goldrick-Kelly said:
“This research reveals for the first time the degree to which energy costs for Irish households have raced around of their European counterparts.
“The analysis finds that electricity prices in Ireland have risen substantially from the mid-1990s, with a particularly pronounced period of cost growth between 2001 and 2007.
“While global energy shocks affected all of Europe, particularly at the end of 2022, Irish prices have not fallen back to the same degree as our counterparts since then.
“In its current formulation, the Irish energy system is set up to fail Irish households. Policy must address our heavy reliance on natural gas and reconsider market design that closely links wholesale electricity costs to gas prices.”
