Dáil Éireann Debate, Tuesday - 9 December 2025
130. Deputy Ken O'Flynn asked the Minister for Climate, Energy and the Environment to outline the energy-price support measures currently in place in EU member states for winter 2025–2026; and to explain how Ireland’s level of support compares on a per-household basis. [69906/25]
Amharc ar fhreagraThe most recent Eurostat report on European energy prices, published in April 2025 for the second half of 2024, lists Ireland as having the fifth highest electricity prices in the EU. However, when adjusted for purchasing power parity, a more accurate reflection of costs as experienced by consumers across Europe, Ireland is far closer to the European average. In this accounting, Ireland ranks twelfth for household electricity prices.
There are several historic reasons for the level of electricity costs seen in Ireland. We have a very dispersed population, a low level of interconnection with European markets and a lack of natural resources. Network charges are also higher in Ireland than other Member States as Ireland’s disaggregated population means that network upgrades and maintenance need to be made to more sections of network that serve fewer final users compared with European cohorts who are more densely urbanised. It is expected that as interconnection with other countries, including France, increases, wholesale electricity prices in Ireland will reduce with a further expected reduction in retail prices.
During the energy crisis, a suite of measures were introduced in recent years to help households and businesses deal with the rising cost of energy. This included €1,500 in electricity credits to all households through four Electricity Costs Emergency Benefit Schemes, at a cost of €3.3 billion. Further financial support was provided through the reduction in VAT on electricity from 13.5% to 9%. This is in addition to one off increases to certain social welfare recipients such as those in receipt of the fuel allowance, pensioners, working families, carers, those living with disabilities and those in receipt of child benefit.
Across the EU, Member States responded to the energy crisis in similar fashion and implemented a range of measures including financial supports for households, tax/levy/charge reductions and consumer protection and empowerment measures.
With regard to support measures for Winter 25/26, in Budget 2026 Government approved an extension of the 9% VAT rate currently applied to gas and electricity until 31 December 2030, saving households up to €100 per year. From January 2026, the Fuel Allowance payment will increase by €5 to €38 per week equating to an increase of more than 15%. This will provide an additional €140 to over 450,000 recipients during the annual fuel allowance season. This payment has also been expanded to include those in receipt of the Working Family Payment. These measures are part of a €28.9 billion allocation for social welfare in 2026, including over €1.15 billion of new measures targeted to assist households.
In December 2024, my Department laid a report before the Houses of the Oireachtas outlining the measures introduced throughout the EU in comparison to Ireland. This is available in the Oireachtas Library. A further report on measures introduced during 2025 is currently being prepared and will be laid before both Houses in due course.
