Electricity prices in Ireland could rise by 8%, minister warns

Electricity prices in Ireland could rise by 8%, a minister has warned.

As the war in the Middle East continues, Ireland’s Minister for Energy Darragh O’Brien said he believes electricity costs could increase by between 4 to 8%.

Ireland has seen already protests across the country over increases in fuel prices.

Mr O’Brien told RTE Radio’s This Week that the situation is “very volatile” and that preparations should be made for “all eventualities”.

“We haven’t seen increases in electricity or gas prices yet, we may see that from May, June, July period,” he said.

“In electricity, it will be single-digit increases but it again depends on each of the providers, looking at from 4-8/9% depending on the provider, gas more than that. But we are prepared for that.

“We have to scenario plan, which we actually did in January, that’s why we have targeted payments like the fuel allowances and expanded that, so about a quarter of households in the country, about 470,000 receive direct assistance in relation to their energy bills and we have extended that for a further month. Those measures are significant but we do have to retain the ability to respond further.”

Asked about energy credits in the future, Mr O’Brien said they are not ruling anything out at the moment but pointed out they had “just brought in additional measures”.

“The 750m euro total package that we’ve brought in is one of the most significant in Europe, and I think people recognise that,” he said.

“We obviously are coming into a period of time where we’ll see usage decline somewhat across households but I want to see things like deploying energy grants to make permanent changes to households and businesses, to protect against spikes in prices.”

Meanwhile, speaking to media in Dublin on Sunday, Taoiseach Micheal Martin said he wants to look at a structural approach to energy.

“It’s not easy but we have to look because this stop-start, depending on when a fossil fuel crisis or shock happens, we take temporary measures,” he said.

“We will be having a look at this in terms of is there a structural way we can help to alleviate generally.”