McDonald says 'bugger all' is being done to keep energy prices down

LAST UPDATE | 19 hrs ago

THE TAOISEACH AND Mary Lou McDonald clashed over today’s announcement that electricity prices are to rise by €1 a month in network costs to cover a large upgrade to Ireland’s current electricity infrastructure.

The energy regulator has approved initial investment over the next five years to upgrade the energy grid of €13.8 billion, which could be scaled up to €18.9 billion. It comes as 300,000 customers are in arrears over electricity payments.

During Leaders’ Questions today, the Sinn Féin leader said the Government’s energy affordability task force has done “absolutely bugger all to achieve affordability” for customers struggling to heat their homes.

“Hundreds of thousands of working households can’t pay their energy bills because of these non-stop hikes and price gouging,” she said.

McDonald said that although the upgrading and modernisation of the grid is important, the onus for funding the upgrades should be on the “mega rich” energy companies.

“It’s beggars belief that ordinary households will be hit with another increase to improve the grid, while energy companies laugh all the way to the bank,” she added.

“Energy companies are making bumper profits. They fleece people at every turn, and your government hasn’t laid a glove on them”.

Micheál Martin said investment in the grid is “absolutely essential” and will benefit employment, construction of houses and public transport.

“I acknowledge fully and understand the pressure that people are under in respect of energy bills,” he said, highlighting the work of the National Energy affordability Task Force to identify measures that will reduce electricity prices.

The Taoiseach said some of these measures, such as VAT reduction on electricity, changes to fuel allowance and retrofitting schemes, were implemented in Budget 2026.

McDonald criticised the government for the lack of one off energy payments in the Budget, but Martin said the focus needs to be on targeted measures.

“Universal energy credits on an ongoing basis is not fiscally sustainable,” he said, adding that McDonald wants “the wealthiest in society to benefit from energy credits”. 

Energy increases

The Commission for Regulation of Utilities (CRU), the energy regulator, has approved initial investment of €13.8 billion over the next five years to upgrade the energy grid, which could be scaled up to €18.9 billion depending on whether the vested parties meet targets.

Advertisement

The average customer’s bills will be increased by €1, or €12 per annum, if the baseline delivery is achieved, or €1.75 per month, or €21 per annum, if higher investment allowance is achieved. 

“The amount will vary annually depending on the approved allowance for each specific year and the rate of delivery by EirGrid and ESBN,” the CRU said.

The upgrade to the grid is designed to ensure it is “secure, reliable, and storm resilient”.

The CRU listed a number of its plans for the project, among them new or updated substations, new overhead lines and underground cables, the connection of up to 300,000 new homes by 2030 and the connection of up to 1m electric vehicles and 680,000 heat pumps.

It also sets out plans for the electrification of public transport projects, including preparation for Metro North.

The PR6 Framework of the project includes 36 delivery obligations the CRU says will ensure ESBN and Eirgrid are held accountable during the regulatory period.

There will be 26 financial performance incentives and penalties for under delivery across multiple areas of the project.

“The CRU will monitor ESBN and EirGrid’s delivery to ensure customers’ money is spent responsibly and that improvements are made to vital services to build a resilient and fit for purpose electricity grid now and beyond 2030,” a statement from the regulator said.

Speaking before Cabinet this morning, Tánaiste Simon Harris said the upgrade to the grid will focus on making it more weather resistant. 

He added that as well as customers, the state would be heavily investing in the upgrade, as well as funds from the bond market.

“Yes, as customers, it is likely that we will each make a contribution of in and around a euro, maximum of €1.75 a month. But the prize in return for that is an energy supply that is resilient and is ultimately cheaper energy,” he said.

Commenting at the publication of the Price Review Six decision, Commissioner Fergal Mulligan said, “Our electricity networks are critical to all aspects of our economy.

“CRU is committed to putting in place the appropriate regulatory framework that will allow our network companies invest the necessary capital that will ensure Irish electricity customers have a secure, reliable and sustainable supply of electricity now, and in the future.”

Additional reporting by Jane Matthews

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.
Learn More Support The Journal