Irish Energy Regulator: No «Excessive Profit» by Providers, High Prices Due to Wholesale Costs

Ireland’s energy regulator, the Commission for the Regulation of Utilities (CRU), stated that energy providers are not making «excessive profit». High energy prices are instead driven by wholesale costs, pass-through charges, and network investments.

This report follows Eurostat findings last week that Ireland has the highest household electricity prices in the EU, with average Irish households paying approximately €480 more annually than the EU average. However, the CRU report suggests high prices are not due to competition issues in the energy market.

CRU’s initial assessment of supplier profit margins does not indicate excess profitability. The report found that competition in Irish retail electricity and gas markets is «functioning reasonably well and is generating meaningful rivalry,» with no significant barriers for new providers. Consumers can achieve «significant savings» by switching providers, and Ireland has high domestic switching rates compared to other European countries.

The Competition and Consumer Protection Commission (CCPC) contributed to the CRU report, which was requested by energy minister Darragh O’Brien. A more detailed review of competition in retail energy markets will be completed.