Pa Daly
Question:202. Deputy Pa Daly asked the Minister for Climate, Energy and the Environment the energy market reforms he is considering to reduce the cost of energy; and if he will make a statement on the matter. [41366/26]
View answerThursday, 28 May 2026
Questions (202)
Written answers
Retail electricity prices are influenced by several factors including wholesale energy prices, system operation costs and supplier hedging. The latest data from Eurostat shows that, in nominal terms, Ireland ranked first for household electricity prices among European countries in the second half of 2025. When adjusting for purchasing power parity, Ireland has the fifth highest electricity prices among European countries.
In a report from last October, the International Energy Agency (IEA) observed that Irish retail prices had not adjusted at a comparable pace to the decline in wholesale prices, with the energy component of retail prices remaining up to three times that of wholesale prices. While the Commission for Regulation of Utilities (CRU) had found no evidence of market failure or windfall profits in the retail sector in its market monitoring role, the IEA findings underlined the importance of progressing the Programme for Government commitment to “commission an independent review into the speed and level of passthrough from wholesale prices to retail prices.”.
As Minister, I wrote to the CRU to request that they commence this independent review, building on the work of previous CRU investigations by reviewing the competitiveness of Irish retail energy markets, examining supplier costs, including hedging and pricing practices, and providing comparative price analysis with other EU Member States.
An interim report was published by the CRU on Monday 11 May, with input from the Competition and Consumer Protection Commission on the competition and element of the energy market.
The CRU assessed key indicators of competition in the energy retail market including barriers to market entry/exit, market share, market concentration, switching and renegotiation rates. The analysis found that retail prices follow wholesale market prices but with a time lag, confirming that hedging can provide greater certainty on retail prices and protect customers from immediate price shocks. However, this does not guarantee lower prices for customers, as any changes in wholesale market prices will take time to feed through to customer bills.
The interim report has also found that competition in the Irish retail electricity and gas markets is working and is generating meaningful rivalry, particularly in the domestic segments and is performing reasonably well from a competition perspective.
This report will inform the work of the National Energy Affordability Taskforce, which was established by my Department last June. The role of the Taskforce is centred on examining costs drivers in the energy sector which ultimately affect bills, and developing policies to enhance affordability of energy for households and businesses.