Keeping an eye on your expenses can be difficult, especially when bills come in from many different places. One bill that every household has is for energy.

Keeping an eye on your bills can help you organise your finances and make informed decisions about how you consume energy.

Electricity bills can be confusing, but understanding your electricity bill is essential. This guide will explore all parts of your electricity bill, including how it is calculated.

Each electricity provider in Ireland has their own unique invoice format for their customers, but they all must contain some key pieces of information which is determined by the energy regulator – the CRU. Here is an example of the front page of a typical household electricity bill.

This front page is essentially a summary, containing all the most important details, including:

Energy bills in Ireland are usually issued every two months. For the vast majority of households which now have a smart meter, electricity readings are relayed automatically to ESB Networks, and they pass these accurate readings directly to the provider.

These readings are used in the cost calculation, which is determined by the type of plan you have. VAT and the PSO Levy are the same for all customers, however discounts and standing charges will vary depending on your plan. Between the summary page and page 2 of your bill, you’ll find the following information regarding costs:

Electricity providers outline exactly how they came to the total electricity bill charge on each bill. How much you will pay will be determined by electricity consumption over the billing period, and the name of the plan you are currently on.

Electricity charges form the bulk of the costs (unless you have used almost no electricity). This figure is arrived at by multiplying the number of kWh you have used by the unit price of the plan you have. Any discounts are deducted from this, the PSO Levy and your standing charge is added, and then 9% VAT is added to get the overall charge.

Let’s look at an example of how your electricity supplier calculates your electricity bill.

In just over 2 months (65 days), your household consumed 333 units of electricity.The unit rate of your current plan is 0.258 cent. 

333 x 0.258 = 85.91.

You have a discount for 12 months, so you save €7.30.

85.91 – 7.30 = 78.61

Let’s say the PSO Levy was €7.30 at the time, and the standing charge was €44.45.

78.61 + 6.90 + 44.45 = 129.96

When we add 9% VAT (11.70), the total is 141.66.  

The PSO Levy is a charge which is issued to all electricity customers in Ireland. It is determined by the Commission for the Regulation of Utilities (CRU). The charge is associated with the additional cost of sourcing renewable and sustainable energy sources. In 2024, the PSO Levy is €42.23 per year including VAT.

Abbreviations are often used on energy bills – and they can be specific to one provider, so make sure to look at a key if there are any abbreviations. A single letter after a number can be extremely important – so pay special attention to this. Almost all homes now have a smart meter, which means most bills use accurate readings (usually indicated with an ‘a’).

An example of meter reading abbreviations on a typical electricity bill could be: