Wholesale electricity prices drop sharply but no respite for domestic users yet

Wholesale electricity prices have now fallen to a cheaper price than they were before the Russian invasion of Ukraine, according to the latest figures from the Single Electricity Market Operator (SEMO).  

However, the lower prices have not translated to householder bills yet. 

Over a year as a whole, electricity prices in 2022 were actually 66 per cent higher than electricity prices in 2021. 

Gas prices peaked last August and have dropped significantly since then, by over 80 per cent. 

Wholesale electricity prices in the last three months of last year fell by 41 per cent, compared to the previous quarter. 

Prices in the last three months of last year were actually 17 per cent cheaper than they were in the last three months of 2021. 

However, while big energy users have seen some reduction in costs, this has failed to be the case for domestic users. 

Finance Minister Michael McGrath said ministers would be carefully considering what measures to introduce or extend to ensure that any action would not result in upward pressure on inflation.

A series of existing cost-of-living measures is currently due to fall away at the end of the month.

These include the energy credit scheme for households, a reduced 9% VAT rate on hospitality, electricity and gas; and the Temporary Business Energy Support Scheme (TBES). Excise is also due to go up on petrol and diesel.