Electricity bills to rise to pay for estimated €19 billion national grid revamp
Bills will increase by €1 per month before VAT to begin
Electricty customers will be facing an increase in prices next year so that a huge upgrade to the national grid, which could cost almost €19 billion, can be facilitated.
Bills will increase by €1 per month before VAT to begin, but this could rise to €1.75 a month, according to RTÉ.
The Commission for Regulation of Utilities (CRU) is the regulator for the sector and it has allowed for ESB Networks and EirGrid to have an initial increase in spending of €13.8 billion.
If both organisations meet their targets, spending will be allowed to increase to €18.9 billion over the next five years.
Domestic users will pay 55% of the costs while businesses will pay 45%.
The tariffs applied will make up between 25% and 30% of a customer's bill.
The upgrade to the grid will allow for 300,000 homes to be built by 2030, as well as one million electric vehicles and 680,000 heat pumps being connected to the grid.
A climate change and storm upgrade will also take place, making the grid better able to handle increased power from wind and solar farms.
The State is investing a total of €3.5 billion and between €4 billion and €5 billion will be raised on the bond market.
Minister for Energy, Darragh O'Brien, says the investment will be the "largest in the electricity grid since rural electrification."
Minister for Finance, Simon Harris, says although there will be increased electricity bills, the "prize" for customers is a more resilient energy supply that will lead to "cheaper energy" in the future.
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ESB and EirGrid's delivery will be monitored by the CRU to ensure that customers' money is being used responsibly.
Currently, 300,000 electricity users are in arrears and figures from the Central Statistics office show that electricity bills have increased by 5% in the past year.
"Changing supplier is one of the fastest and most effective ways for customers to lower their energy bills," Fergal Mulligan, the CRU’s Commissioner, said.