No evidence of energy companies profiteering despite highest electricity prices in EU, regulator says

"It comes as the Irish Independent was the first to reveal last week that Ireland now has the highest electricity prices in the European Union. Prices here are around 40pc higher than the average in the EU which means households are paying €480 a year more for electricity than the European average."

"Although it concluded that no evidence of profiteering by energy companies here, it said profit margins will be examined further in the full review of competition. This will look at a variety of customer types and go back over time, to support what it said would be a more granular assessment."

"The report, entitled 'CRU Interim Review of the Electricity and Gas Retail Markets', admits that prices are high in this country. But it said elevated energy prices in Ireland are being driven by a number of factors including wholesale costs, Ireland's network architecture, and network investment in support of a secure low carbon transition. High costs are not be driven by any underlying issues or failures in the competition model, the report found."

""As part of this program of work, the CRU will deliver a number of reports, including a wider and more detailed review of competition in the retail energy markets." "The wider review will further examine supplier margins in more detail and analyse market segments. This will involve extensive data collection, including a customer survey to help understand customer perspectives on the market," the CRU report said."

High energy costs are attributed to elevated wholesale gas costs and network charges. A regulator report acknowledges that additional work is needed to assess profits in particular electricity and gas market sectors. Ireland has the highest electricity prices in the European Union, with prices about 40% above the EU average, meaning households pay roughly €480 more per year. The regulator found no evidence of profiteering by energy companies, but stated that profit margins will be examined further in a full competition review. The wider review will analyze supplier margins across market segments using extensive data collection, including a customer survey. The report also links high prices to wholesale costs, Ireland’s network architecture, and network investment supporting a secure low carbon transition.

Read at Irish Independent