Irish household bills set to increase by €83 to pay for upgrade of country's power system

Irish households are set to see a rise in electricity bills next year to facilitate an "essential" major upgrade of the county's power system.

Households in Ireland currently pay €254 on average per year included in their bill to contribute to funds needed for upgrades but under the current proposal that figure would rise to €337.

ESB Networks say the works are essential to strengthen the electricity network which is struggling to meet the country's demands for power and is facing extra demand from the economy and the growing population.

Over the next five years, if the energy regulator approves, an investment of between €10.1bn and €13.4bn is needed for the upgrades.

This will see households paying an extra €1.60 per week, a total of €83 per year, or €415 over the investment period.

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Chief Executive of the Electricity Association of Ireland, Dara Lynott, has said this investment is needed to handle renewable energy from wind farms and solar panels, many of which have had to be switched off because the current power system could not carry the extra energy they produced.

"The choice is clear", Mr Lynott said, "We can delay and then suffer curtailment, rising costs and climate risk, or we can invest in a clean, secure and electrified future.

"These figures, while substantial, need to be placed in context as they would equate to approximately €1.60 per customer per week in additional cost.

"Such investment would enable Ireland to dramatically reduce emissions, improve system reliability and unlock economic potential from excess renewable generation.

"It would also allow for new technologies such as heat pumps, electric vehicles, solar connections and battery storage to be scaled across homes, businesses and industry, which is of critical importance," Mr Lynott added.