Prices have risen in Ireland far faster than any other western EU country, according to a report from the Nevin Economic Research Institute (Neri).
The report concludes that the Irish energy system is set up to fail Irish households.
This is due to an over-reliance on gas, according to the a think tank which backed by the Irish Congress of Trade Unions.
Economist Paul Goldrick-Kelly, who wrote the report, said the liberalisation of the energy market has failed to reduce prices.
There is a ned for a rethink our approach to the electricity market, he said.
“If the goal of electricity market liberalisation was to lower prices, it appears to have been a failure, “ the economist said.
The Neri report states that Irish electricity price rises has dramatically outpaced both general inflation and the energy price trajectories of almost all other EU states.
The report, ‘Ireland’s Electricity Prices Over Time’, shows that between January 1996 and September 2025, Irish electricity prices increased fourfold. This is more than double the increase in general consumer prices during the same period.
Many EU states saw rapid price declines after the 2022 peak, when the Russians invaded Ukraine.
“Irish prices did not fall to the same degree. These disparities imply Irish households pay on average around €360 more per year than their European counterparts in 2025 euro prices,” Mr Goldrick-Kelly wrote.
One of the main drivers of higher prices is the role natural gas plays in the Irish electricity system.
Current market designs create a “close link” between wholesale electricity costs and natural gas prices, leaving Ireland more vulnerable to global gas market volatility.
The report recommends measures to reduce to reduce the cost, in particular by reducing the role of natural gas within the Irish generation system.
It says the higher charges may reflect a pattern of limited investment in the Irish network infrastructure, pointing to attempts by the energy regulator as far back as in 2005 to see highlight “historic underinvestment” in the sector.
This underinvestment “remains an issue”, the report said.
Ireland’s electricity market liberalisation began in phases from 200.
Around the same time Ireland moved from having some of the cheapest electricity in the EU15 in 1990 to being one of the most expensive countries for nearly all domestic consumption bands by early 2025 in euro terms.
The EU15 refers to the members of the EU prior to its 2004 expansion.
Mr Goldrick-Kelly said: “This research reveals for the first time the degree to which energy costs for Irish households have raced around of their European counterparts.”
He said the analysis finds that electricity prices in Ireland have risen substantially from the mid-1990s, with a particularly pronounced period of cost growth between 2001 and 2007.
“While global energy shocks affected all of Europe, particularly at the end of 2022, Irish prices have not fallen back to the same degree as our counterparts since then.”
The economist said that in its current formulation, the Irish energy system is set up to fail Irish households.
Policy must address our heavy reliance on natural gas and reconsider market design that closely links wholesale electricity costs to gas prices, Mr Goldrick-Kelly said.
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