Irish households paid nearly 30% above the European average for their electricity last year, according to new Eurostat figures.

The annual electricity bill for a household in Ireland was nearly €350 higher than the EU average in the second half of last year.

Irish households paid €36.99 per 100kWh of electricity in the second half of 2024, the third highest level in the EU, and well above the EU average of €28.72

Only Germany (€39.43) and Denmark (€37.63) paid more than Ireland, while Hungary (€10.32), Bulgaria (€12.17) and Malta (€13.01) enjoyed the lowest prices.

Ireland’s electricity prices look even more stark when considering the difference in VAT on energy products between us and Germany & Denmark.

Ireland currently has a VAT rate of 9% on all electricity and gas products, while Germany charges 19% and Denmark charges an even higher rate at 25%.

Considering that their net price is only slightly higher than Ireland’s, it means that Irish consumers are paying a far higher rate per kWh before tax.

The government decided in April to extend the 9% reduced VAT on electricity and gas for a further six months, now lasting until the end of October.

Transmission costs have a role to play in Ireland’s high electricity prices compared to other countries, thanks to our widely distributed population. 

Transmission refers to moving large amounts of electricity over long distances, as opposed to distribution, which is the part of the system where the consumers are connected.

Countries with lower population density, such as those with a larger rural population, require a more extensive transmission network to meet their needs.

Ireland has the second highest proportion of transmission costs (36%) compared to distribution in the EU last year, exceeded only by Lithuania (39%).