Wholesale electricity prices have seen record reductions in 2023, with electricity auction prices now 70% lower than their peak in August 2022. Although energy prices have dropped dramatically, they remain elevated compared to historic levels. Energy prices are still a headache for businesses that need to manage their cost base and budgets.
30-second overview
Wholesale electricity prices are the main driver of the energy price paid by businesses and consumers for electricity use. It is essentially the prices that electricity suppliers must pay to power stations and generators and it is constantly changing - there are multiple auctions every day. In this article, we take a look into wholesale electricity prices and how to maximize your savings in a changing and volatile market. We will cover:
- What wholesale electricity prices are and why they are important
- See current wholesale electricity prices and trends
- Overview of supplier price plans and structures
- How to save and cut your costs on business electricity
What are wholesale electricity prices?
It is quite simple – businesses and domestic consumers purchase electricity from regulated electricity suppliers. Electricity suppliers purchase that energy from power stations, wind farms, and other renewable generators. Suppliers then sell electricity to their customers with a profit margin and regulatory charges added - that’s the business in its simplest form.
The market in Ireland where electricity generator and supplier buy and sell electricity is called the Single Electricity Market (SEM). It is a regulated market and there is an auction every hour of every day. The final clearing price is the highest price achieved in each of the hourly auctions. All suppliers purchasing energy, pay the same price (and power stations receive the same price).
Wholesale electricity prices are very closely correlated with natural gas prices. Approximately 50-60% of Ireland's total electricity needs are met via natural gas power stations. While the proportion of renewable wind generation is increasing year on year, we are still highly dependent on natural gas as a source of energy and electricity supply. This means that wholesale electricity prices can vary daily depending on natural gas spot market prices, how windy it is on any given day, and the demand on the electricity grid each day.
Current wholesale electricity prices
Wholesale energy prices have fallen to 73% compared to the peak in August 2022 when power station auction prices averaged €388 per MWh (which is equivalent to 38.8 cents per kWh). Wholesale electricity prices stabilised quite quickly and were at acceptable levels by Sept 2022. A cold snap across Europe in December 2022 resulted in a slight spike in prices for that month. Wholesale electricity prices quickly retraced in January 2023 and traded between €100 and €130 per MWh for most of 2023. Since the start of 2024 wholesale electricity price are consistently below €100 per MWh. It is important to note that businesses and consumers can not purchase electricity at the 'raw' wholesale price. Suppliers must add regulatory charges of approximately 12 cents per kWh which goes to the electricity grid operators (ESB Networks, Eirgrid, SEM etc.) to maintain and operate the electricity grid in Ireland. The table below shows the recent linear average wholesale electricity prices in the SEM day-ahead auction market. The liner average auction price does not take into account the time of day that energy is used. Energy consumed in the day time when demand is higher is more expensive than energy consumed at night time when demand is lower.
Wholesale electricity prices in Ireland
Month |
Day Ahead Market Price |
Price per kWh |
% Change |
March 2024 |
86.66 €/MWh |
8.67 c/kWh |
+ 2.4% |
Feb 2024 |
84.62 €/MWh |
8.46 c/kWh |
- 15.2% |
Jan 2024 |
99.85 €/MWh |
9.98 c/kWh |
+ 12.1% |
Dec 2023 |
89.07 €/MWh |
8.91 c/kWh |
- 27.5% |
Nov 2023 |
122.90 €/MWh |
12.29 c/kWh |
- 2.1% |
Oct 2023 |
125.52 €/MWh |
12.55 c/kWh |
+ 12.4% |
Sept 2023 |
111.64 €/MWh |
11.16 c/kWh |
+ 4.9% |
Aug 2023 |
106.42 €/MWh |
10.64 c/kWh |
+ 10.6% |
July 2023 |
96.26 €/MWh |
9.63 c/kWh |
- 17.8% |
June 2023 |
117.10 €/MWh |
11.71 c/kWh |
+ 11.3% |
May 2023 |
105.21 €/MWh |
10.52 c/kWh |
- 16.2% |
April 2023 |
125.60 €/MWh |
12.56 c/kWh |
- 13.6% |
March 2023 |
145.29 €/MWh |
14.53 c/kWh |
- 8.7% |
Feb 2023 |
159.13 €/MWh |
15.91 c/kWh |
- 1.9% |
Jan 2023 |
162.23 €/MWh |
16.22 c/kWh |
- 12.4% |
Q4 2022 |
185.24 €/MWh |
18.52 c/kWh |
- 40.8% |
Q3 2022 |
312.71 €/MWh |
31.27 c/kWh |
+ 72.6% |
Q2 2022 |
181.17 €/MWh |
18.12 c/kWh |
- 18.8% |
Q1 2022 |
223.15 €/MWh |
22.32 c/kWh |
+ 64.7% |
2021 average |
135.52 €/MWh |
13.55 c/kWh |
|
March 2024 |
Day Ahead Market Price |
86.66 €/MWh |
Price per kWh |
8.67 c/kWh |
% change |
+ 2.4% |
|
Feb 2024 |
Day Ahead Market Price |
84.62 €/MWh |
Price per kWh |
8.46 c/kWh |
% change |
- 15.2% |
|
Jan 2024 |
Day Ahead Market Price |
99.85 €/MWh |
Price per kWh |
9.98 c/kWh |
% change |
+ 12.1% |
|
Dec 2023 |
Day Ahead Market Price |
89.07 €/MWh |
Price per kWh |
8.91 c/kWh |
% change |
- 27.5% |
|
Nov 2023 |
Day Ahead Market Price |
122.90 €/MWh |
Price per kWh |
12.29 c/kWh |
% change |
- 2.1% |
|
Oct 2023 |
Day Ahead Market Price |
125.52 €/MWh |
Price per kWh |
12.55 c/kWh |
% change |
+ 12.4% |
|
Sept 2023 |
Day Ahead Market Price |
111.64 €/MWh |
Price per kWh |
11.16 c/kWh |
% change |
+ 4.9% |
|
Aug 2023 |
Day Ahead Market Price |
106.42 €/MWh |
Price per kWh |
10.64 c/kWh |
% change |
+ 10.6% |
|
July 2023 |
Day Ahead Market Price |
96.26 €/MWh |
Price per kWh |
9.63 c/kWh |
% change |
- 18.8% |
|
June 2023 |
Day Ahead Market Price |
117.10 €/MWh |
Price per kWh |
11.71 c/kWh |
% change |
+ 11.3% |
|
May 2023 |
Day Ahead Market Price |
105.21 €/MWh |
Price per kWh |
10.52 c/kWh |
% change |
- 16.2% |
|
April 2023 |
Day Ahead Market Price |
125.60 €/MWh |
Price per kWh |
12.56 c/kWh |
% change |
- 13.6% |
|
March 2023 |
Day Ahead Market Price |
145.29 €/MWh |
Price per kWh |
14.53 c/kWh |
% change |
- 8.7% |
|
Feb 2023 |
Day Ahead Market Price |
159.13 €/MWh |
Price per kWh |
15.91 c/kWh |
% change |
- 1.9% |
|
Jan 2023 |
Day Ahead Market Price |
162.23 €/MWh |
Price per kWh |
16.22 c/kWh |
% change |
- 12.4% |
|
Q4 2022 |
Day Ahead Market Price |
185.24 €/MWh |
Price per kWh |
18.52 c/kWh |
% change |
- 40.8% |
|
Q3 2022 |
Day Ahead Market Price |
312.71 €/MWh |
Price per kWh |
31.27 c/kWh |
% change |
+ 72.6% |
|
Q2 2022 |
Day Ahead Market Price |
181.17 €/MWh |
Price per kWh |
18.12 c/kWh |
% change |
- 18.8% |
|
Q1 2022 |
Day Ahead Market Price |
223.15 €/MWh |
Price per kWh |
22.32 c/kWh |
% change |
+ 64.7% |
|
2021 average |
Day Ahead Market Price |
135.52 €/MWh |
Price per kWh |
13.55 c/kWh |
% change |
|
|
Who is the cheapest business electricity supplier in Ireland?
Business energy prices play a crucial role in financial forecasting and budgeting. To ensure that your business is on the best electricity price plan, it is important to compare prices and suppliers every year. The cheapest energy supplier and price plan is constantly changing and suppliers do not reward loyalty. Businesses must compare the options and stay on top of energy prices to get the best deal.
There are different products and electricity pricing structures available. Understanding the options is essential for businesses to make the most cost-effective decisions. More information on electricity price plans can be viewed here. Below is a summary of the most common commercial price plans.
- Fixed-term business electricity contracts: A fixed-term contract typically lasts between one to two years. The energy unit and standing charge remain the same throughout the contract period.
- Wholesale Energy tracker: The power station tracker follows power station auction prices (or wholesale energy prices). The monthly average price is passed onto account holders at the end of each month.
- Unbundled pass-through contracts: An unbundled energy tariff splits your bill in two between the energy cost which is fixed and the other elements that make up the unit rates, which vary.
- Flexible contracts: For larger businesses, this type of contract provides the flexibility to fix prices for the months or years ahead apportioned between 10% to 25% of your expected usage.
- Blend and extend contracts: This type of contract enables you to extend your contract term with the same supplier, who will in turn reward your loyalty with lower rates.
The table below provides guidance on the cheapest business electricity rates per kWh. However, It's best to speak with Utilityfair's energy experts to get bespoke advice for your business. Call us on 01 547 0999 or fill in our enquiry form to get a free price plan comparison.
Business Electricity Rates per kWh
Business Size |
24hr Unit Rate |
Day Unit Rate |
Night Unit Rate |
Standing charge (daily) |
Small to Medium |
23c - 26c |
25c - 28c |
14.5c - 17.5c |
€0.41 - €1.20 |
Large |
-- |
20c - 23c |
13.5c - 16.5c |
€3.50 - €8.50 |
Business Size Small to Medium |
24 hour unit rate |
23c - 26c |
Day unit rate |
25c - 28c |
Night unit rate |
14.5c - 17.5c |
Standing charge (daily) |
€0.41 - €1.20 |
|
Business Size Large |
Day unit rate |
20c - 23c |
Night unit rate |
13.5c - 16.5c |
Standing charge |
€3.50 - €8.50 |
|
How Utilityfair can help you reduce business electricity costs
With falling wholesale electricity prices and fluctuations in energy auction prices, getting the right price plan and timing it correctly is more complicated than in the past.
Utilityfair's team of energy experts is on hand to answer all your questions on wholesale electricity prices and ensure that your business is on the best, and cheapest electricity price plan. To get started fill in our enquiry form or give us a call on 01 547 0999.
We take the hassle out of energy contract management, giving you more time to focus on keeping your business successful.