30-Second Overview
Wholesale electricity and gas prices are over 50% lower than their 2022 peak. However, they are still elevated by historical standards. Businesses locked into expensive energy contracts should review options to save costs.
U.S. tariffs announcement in 2025 softened energy demand and helped stabilise prices. However, in 2026, the escalation of tenstions in the Middle East has put upward pressure on energy commodity prices. The impact on wholesale electricity prices is moderate with most pressure on heating oil and petrol / diesel prices for immediate delivery. This guide explains the main drivers behind business electricity and gas prices, what to expect in 2026, and when to fix energy contracts.
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What Factors Affect Electricity Prices?
1. Global Demand for Natural Gas
Ireland’s electricity prices are closely correlated with natural gas prices because 50% of electricity generation comes from gas-fired power stations. Rising global demand for natural gas from economic growth increases prices.
2. Geopolitical Conflicts
Events like the 2022 Russian invasion of Ukraine resulted in price shocks and disrupted energy supply chains. Europe now relies heavily on Norwegian gas pipelines and LNG imports from the U.S. and UAE. Any disruptions to these supply routes puts pressure on wholesale electricity prices.
3. Weather Conditions
Electricity demand and supply fluctuate with the weather. Cold snaps drive up heating needs, increasing electricity consumption. Hot weather leads to higher energy use for air conditioning. On the supply side, windy days boost wind power generation, which helps lower electricity auction prices.
4. Ireland’s Energy Mix
Ireland’s electricity generation comes primarily from natural gas, which accounts for about 50% of the total. Wind energy contributes roughly 26%, coal provides around 9.5%, and solar and hydroelectric power make smaller, but growing, contributions to the energy mix.
5. Infrastructure & Regulatory Costs
All electricity bills include regulatory charges of circa 14.6c per kWh. This accounts for 50% of final electricity costs. Regulatory charges fund grid maintenance, operations, and renewable investment. They are reviewed annually by the Commission for Regulation of Utilities (CRU), with any changes becoming effective on 1 October each year.
6. Government Policy
Policies supporting renewables and grid upgrades are funded through the electricity tax, carbon tax and the electricity PSO levy. While environmentally responsible, it adds to the costs that consumers must pay.
Why Are Electricity Prices Linked to Natural Gas?
Gas-fired generation supplies half of Ireland’s electricity. As a result, changes in gas prices directly impact electricity prices. Additionally:
- Ireland imports 75% of its gas via the UK and has little domestic storage to cushion short-term volatility.
- Ireland has no LNG terminals, which also increases exposure to market volatility.
Will Energy Suppliers Reduce Electricity Prices in 2026?
Wholesale electricity prices peaked in August 2022. Energy commodity prices started coming down quite sharply in January 2023, thanks to strong natural gas storage levels and a mild winter. Wholesale electricity prices moved sideways through most of 2023, with another spike in late 2024. In 2025, we saw downward pressure return, as a direct result of U.S. import tariffs, which lowered expectations for global energy demand. In March 2026, upward pressure returned as a direct result of the war between Iran, Israel and the USA. The conflict is currently expected to be short-lived, with the main pricing pressure on heating oil and petrol/diesel prices for immediate delivery.
Understanding Business Electricity Contract Types:
- Wholesale Electricity Trackers: These contracts track the prices that power stations sell electricity at. Suppliers must then add regulatory charges and thier own profit margin. Customers' monthly bills mirror actual wholesale price movements.
- Fixed-Price Electricity Contracts: Lock in a unit rate and standing charge for 12 to 24 months, offering budget certainty.
Commercial vs Domestic Pricing
Commercial electricity prices react faster to wholesale market changes because suppliers hedge weekly or monthly. Business prices are now over 50% cheaper than in 2022. Domestic prices lag wholesale markets due to longer-term hedging strategies.
When Should You Fix Business Electricity Prices?
If your electricity contract is ending soon, then it is time to review your options for your next contract. Auto-rolling onto a variable rate will cost you nearly double. You have no option but to consider business electricity price plans that are currently available in the market. Your options are:
- Fixed-Price Plans (12–24 months): Great for budget certainty when prices are low.
- Wholesale Electricity Trackers: Track live wholesale electricity price auctions - the price that power stations sell electricity at. Ideal if you expect prices to fall further.
- Short-Term Contracts (6 months): A good option if electricity prices are high and you prefer not to run the volatility of a wholesale electricity tracker.
💡Pro Tip: Avoid auto-rolling onto out-of-contract rates, which are typically the highest and can double your costs. If you’re locked into an expensive contract, you may save money by terminating the contract early and switching to a new supplier. Read our guide on breaking electricity and gas contracts or talk to our experts.
Will Wholesale Electricity Prices Keep Falling in 2026?
We expect energy commodity prices to remain stable to slightly lower in 2026. Key drivers to watch for are:
- Conclusion of the war between Iran, Israel and the USA
- Rumption of oil and gas shipments through the Strait of Hormuz
- U.S. tariffs reducing global manufacturing demand.
- Trade tensions softening global energy commodity consumption.
Prices depend on political developments, global economic conditions and weather patterns. While declining energy costs are a positive for businesses, the broader implications of slower global growth are less favourable.
How Utilityfair Can Help You Save on Energy Costs
Utilityfair is Ireland's largest and most reviewed commercial energy broker. We can quickly analyse your energy bills and compare them against current market pricing from all suppliers. While it can be time-consuming for you to do directly with suppliers, it only takes our energy experts a couple of minutes. We already have the latest pricing from all suppliers loaded into our models. Utilityfair simplifies the process for you, and it is completely free. We can quickly:
- Compare commercial energy rates across all suppliers
- Advise you on fixed vs wholesale tracker contracts
- If you choose to switch to a cheaper price plan, we can set it up for you hassle-free, saving you time and money
👉 Get Started Today!
Fill out our enquiry form, click the link below or call 01 547 0999 to speak with a Utilityfair energy expert and start saving.
Frequently Asked Questions
We expect energy commodity prices to remain stable to slightly in 2026. Key drivers to watch are:
(i) conclusion of the war between Iran, Israel and the USA,
(ii) resumption of oil and gas shipments through the Strait of Hormuz,
(iii) U.S. tariffs, reducing global manufacturing demand, and
(iv) trade tensions, softening global energy commodity consumption.
In short - yes! Trump's tariffs on imports create economic uncertainty and reduce expectations for global production and economic expansion. This, in turn, reduces the forecasts for demand in energy commodities and places downward pressure on electricity and gas prices.
Approximately 50% of Ireland’s electricity is produced from gas-fired power stations. As a result, wholesale electricity prices are closely tied to natural gas prices.
Yes. If your current contract was fixed at expensive rates, switching early could yield significant cost savings. Talk to our energy experts, and we can advise you.
A wholesale tracker passes on the average rate that power stations sell to suppliers at. Supplier must also add regulatory charges of approximately 14.6 c/kWh and thier own profit margin.
They can be, but not always. Business electricity plans track wholesale markets more closely and react faster to price drops than domestic plans.
There is no exact time that is always better. However, the market is usually more cautious in winter months and reactions to unexpected events such as cold snaps, outages and supply disruptions become more amplified.
Key drivers include rising global gas demand, geopolitical conflicts, extreme weather, and infrastructure maintenance outages.
Around 14.6 cents per kWh comes from regulated charges for transmission, distribution, and market operations. This represents approximately 50% of your bill.
Businesses can choose fixed-price contracts (12–36 months), wholesale trackers, or short-term 6-month plans.
Utilityfair compares business electricity prices across all suppliers, advises on contract timing, and helps avoid costly variable rates. Speak to our energy experts today for a free energy price comparison. You can only win!
