If you are concerned about the cost of your electric bill in Ireland, it could be very helpful for you to understand the price of electricity and the factors that contribute to Ireland’s electrical costs being on the high side. Everyone makes use of electricity, and your annual expenditures can have a huge percentage of it channeled towards the payment of electricity bills. With the invention of appliances which need less energy to operate, the rate at which electricity is consumed per appliance is beginning to decline. However, the case is only worsened as electrical gadgets, as well as, appliances are beginning to increase in homes around Ireland which ensures that the electricity consumption continues to rise.
According to a recent report released by the Commission for Regulation of Utilities in Ireland, figures point to the fact that the average electricity consumption for every household in Ireland annually is 4200 kWh. If we take into consideration the standard rates that are charged by one of the providers of electricity in Ireland, you will be paying about €1005 every year for 4200 kWh.
As of 2018, users of electricity and gas were reported to have experienced price hikes up to 3 times between January and September. As wholesale electricity, as well as, gas prices continue to increase steadily, the effect on the pockets of customers around Ireland is negative as we now have electricity prices which have gone up by about 50% when compared to 2016. As of September 2018, if we go with the annual reported average consumption of 4200 kWh, €1044 was the least amount paid for electricity consumption in Ireland. For discounted plans, an estimated €838 was the least costly in 2018.
For customers' gas usage, the cheapest options for discounted, as well as, standard plans were about €836 for standard plans and €683 for discounted plans for an estimated annual consumption of about 11000 kWh.
Why The Rising Average Cost?
Reports show that Ireland ranked among the first 5 for countries with the most expensive electrical bills for household usage based in the Eurozone area. If we compare this with 28 countries in the EU, the electricity prices in Ireland happens to be 13% higher. The average cost of electricity in Ireland continues to rise, and some factors are responsible for this. A report recently released by SEAI gives insight on the factors which currently affect the prices of electricity, as well as, gas in Ireland. Below we highlight them:
Fossil fuels dependency
This is the factor that is most prominent as Ireland’s dependency on the supply of fossil fuels from foreign countries makes the nation vulnerable to any fluctuations that take place in relation to international energy prices. The Total Final Consumption is mostly made up of fossil fuels, and oil and gas constitute about 58% and 15% respectively. So, Ireland is greatly dependent on oil for the supply of energy.
The fuel mix
This factor has a relationship with Ireland's level of dependence on fossil fuels for the generation of electricity. Among the fuels used to generate electricity, fossil fuels make up about 63%. If we consider gas by itself, it makes up about 44% of fuels used for generating electricity. This comes behind Latvia which is put at 50%.
Investments in electricity infrastructure
Another factor we must consider is the constant investment which the electricity infrastructure in Ireland needs in order to match the ever-increasing demand for electricity by businesses, as well as, households including the requirement for increased renewable energy penetration. At present, there's a separation between the electricity network and its retail end. So, when it comes to the transmission network in Ireland, a natural monopoly exists between the TSO, EirGrid, as well as, the TAO, ESB Networks.
If these monopolies are not regulated, it could lead to extremely high prices and this is the reason that the CRU keeps their activities regulated. When it comes to tariffs, there is a regulation on what the TSO can impose on households and businesses on the network which serves as a way of offsetting the costs that the TSO incurs in the transmission network’s operation, as well as, development and maintenance.
Finally, another factor that should be taken into consideration is how much taxes electricity consumers get to pay. The taxes that are paid by residential customers comprise of Value Added Tax, PSO, as well as, the carbon tax. The rationale behind the imposition of PSO is to serve as support for the renewable generation plants in Ireland, including gas plants. This will help to enhance energy supply security by promoting renewable energy generation, as well as, indigenous fuel usage.
Get in Control of your Electricity & Gas now with PrepayPower
If you switch to PrepayPower today, you can get in control of your electricity & gas. PrepayPower is currently the largest dedicated PAYG provider of electricity & gas. As the first provider of integrated services in Ireland, PrepayPower is a leading expert.
When you work with PrepayPower, a smart control system will be installed at your residence which will help you to monitor in real-time the level of energy that is being consumed and how much credit is being used up. With the smart control system, it is now possible for you to closely stay updated with the amount of electricity being utilised and monitor your credit. With the same way that you make use of your mobile phone, you can get your credit topped up seamlessly. PrepayPower simply reduces the number of bills that you have to worry about.
In Ireland today, more than 150,000 homes now have PrepayPower as their supplier. This makes PrepayPower a perfect option if you happen to be fed up with the exorbitant bills that you receive for electricity and gas that are usually estimated. Now you can get electricity and gas solutions that provide you with smart monitoring and a seamless way of paying your cheaper electricity and gas bills. Here are the benefits that you get to experience when you choose PrepayPower as your supplier:
With the option of pay-as-you-go for integrated electricity and gas solutions, you have lesser bills to be bothered about.
With PrepayPower, the installation is free and will be done at your convenience. Our installation process is totally seamless.
Rest of mind
There is no fear of having your supply cut off when your credit gets exhausted in the evening or on weekends. You can, also, get an extra €10 emergency credit in the event that you run out of supply.
- Easy top-up solutions
Now you can easily top up your credit the same way you make use of your mobile phone. Top up can be done online, with the use of your mobile phone, or you can pay us a visit at our store.
With PrepayPower, you can stay in total control of your expenditures on electricity and gas by monitoring, reducing, and saving on the level of energy that you use. Now, you have all the reasons that you need to switch to PrepayPower today.