Household Energy Prices in Ireland10 Jan 2018
Household energy prices in Ireland are near the Eurozone average, but are relatively high compared to the UK. Taxes on household energy in Ireland are less than half the average level in the Eurozone.
Irish Prices Relative to the Eurozone and the UK
Household electricity prices in the EU28 decreased by 0.5 per cent on average between the first half of 2016 (H1 2016) and the first half of 2017 (H1 2017) to stand at €20.4 per 100 kWh. Prices in the first half of 2017 ranged from below €10 per 100 kWh in Bulgaria to more than €30 per 100 kWh in Denmark and Germany. Household electricity prices in the Eurozone were an average of €22 per 100 kWh and €23 in Ireland.
Household gas prices fell by 6.3 per cent on average in the EU between H1 2016 and H1 2017 to stand at €5.8 per 100 kWh. Prices in the first half of 2017 ranged from below €3.5 per 100 kWh in both Romania and Bulgaria to above €8 per 100 kWh in Denmark and €12 per 100 kWh in Sweden. The average gas price in the Eurozone was €6.5 per 100 kWh and €6.3 in Ireland.
Table 1 compares Irish household electricity and gas prices in H1 2017 with those in the Eurozone and the UK.
Table 1 – Ireland’s Electricity and Gas Prices, H1 2017
Table 1 shows that Irish electricity prices in the first six months of 2017 were 5 per cent above the Eurozone and 31 per cent above the UK. Gas prices in Ireland were 3 per cent below the Eurozone average, while gas prices were more than one-third above those in the UK.
Irish Taxes on Household Energy
Irish taxes on gas and electricity are relatively low as a percentage of price1 .Taxes and levies made up on average two-fifths (40 per cent) of electricity prices in the first half of 2017 in the Eurozone. The share of taxes and levies on electricity varies significantly across EU member states. They ranged from 5 per cent in Malta, to 67 per cent in Denmark, and 54 per cent in Germany. Ireland is one-of-seven EU countries where the average cost of electricity is higher than the EU average. Ireland has the fourth highest electricity prices, with 20 per cent of the total cost attributable to taxes, relative to 24 per cent in the UK. Taxes on household gas average 31 per cent in the Eurozone, compared to 18 per cent in Ireland and 7 per cent in the UK.
1 These figures do not take account of the increase to the Public Service Obligation (PSO) Levy from 1 October 2017 which supports the generation of electricity from sustainable, renewable and indigenous sources.