30-Second Overview
From 1 October 2025, electricity suppliers in Ireland will increase their charges due to higher regulated grid fees. The increase will be partially offset by a reduction in the PSO Levy for 2025/2026.
Businesses face a rise of about 1.3 c/kWh during daytime and 0.8 c/kWh at night. These charges are mandatory and not profit-driven - they support grid maintenance and upgrades, and renewable energy integration. While unavoidable, smart efficiency measures and competitive tariffs can help offset the impact.
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Understanding the 2025/26 Increase in Electricity Regulated Charges
Every year, the Commission for Regulation of Utilities (CRU) reviews Ireland’s electricity regulated charges - also known as non-energy charges or pass-through charges. These are updated annually on 1 October and remain in effect until 30 September of the following year.
For 2025/26, the CRU has approved a sizable increase in these charges, which will affect all electricity consumers because suppliers are legally required to pass them through at cost, without any profit margin.
Key Facts About the Increase
- Effective Date: 1 October 2025.
- Impact on Rates: +1.3 c/kWh to daytime electricity rates & +0.8 c/kWh to nighttime rates.
- % Increase on Bills: The increase equates to +4% to both daytime and nighttime electricity rates.
- Reason for Increase: Higher costs for upgrading and maintaining the electricity grid; Infrastructure upgrades to support microgeneration and greater renewable energy integration; New offshore wind farm interconnection projects; and, improved interconnection with Europe.
Where the Money Goes
The revenue from regulated charges goes directly to ESB Networks and EirGrid to fund the development, operation, and maintenance of Ireland’s electricity grid.
Link to Ireland’s Renewable Targets
This increase reflects the cost of achieving Ireland’s renewable energy and carbon reduction goals. As renewable generation and microgeneration grow, significant investment is needed in grid infrastructure—and that cost is shared among electricity users, typically in proportion to their energy usage.
PSO Levy Reduction
From 1 October 2025, the PSO levy will be reduced by 40%, with a further 15% reduction from 1 Dec 2025 (total 55% reduction). This will partially offset the increase in regulated distribution and transmission charges. Full details on the PSO levy can be found in our PSO Levy 2025/2026 Guide.
How Much are Regulated Charges Increasing in 2025/2026?
The table below shows the approximate impact of increased electricity transmission and distribution charges, based on average usage profiles. The exact figure will differ slightly between users.
Electricity Pass Through Charges (non-energy)
GP / DG5 Meter Category
| Meter Category | 2024 / 2025 pass-through charges (cent per kWh) |
2025 / 2026 pass-through charges (cent per kWh) |
Increase (cent per kWh) |
|---|---|---|---|
| 24 hour rate | 13.33c | 14.50c | + 1.17c |
| Daytime rate | 14.93c | 16.24c | + 1.31c |
| Nighttime rate | 5.92c | 6.75c | + 0.83c |
LVMD / DG6 Meter Category
| Meter Category | 2024 / 2025 pass-through charges (cent per kWh) |
2025 / 2026 pass-through charges (cent per kWh) |
Increase (cent per kWh) |
|---|---|---|---|
| Daytime rate | 11.48c | 12.50c | + 1.02c |
| Nighttime rate | 5.53c | 6.31c | + 0.68c |
| Capacity Charge | 12.32 c/kVa | 13.50 c/kVA | + 1.18 c/kVA |
Electricity suppliers must pass through changes in regulatory costs to electricity customers. The suppliers are simply collection agents for regulatory charges via customer bills and do not take any profit on those charges.
The only way to counter the charges is to use less electricity with energy-efficient practices and by making sure that you are on the best electricity deal on the market. Our energy experts can review your electricity bills and make sure that you are on the best possible electricity plan.
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What are Electricity Regulatory Charges?
There are two main components to the electricity regulatory charges:
- Transmission of system charges: These are charges for building, maintaining and operating the electricity transmission network. The charges provide the required funds to EirGrid (who operate the transmission system) and ESB Networks (as the owner of the electricity grid). This is the national electricity grid, the high voltage wires that carry electricity from one part of Ireland to another, and interconnectors with electricity generation assets such as power stations and onshore or offshore wind farms.
- Distribution use of system charges: These are charges for building, maintaining and operating the electricity distribution network. The charges provide the required funds to ESB Networks, who operate local electricity distribution networks. This includes local electricity substations, low-voltage electricity wires that bring electricity to buildings, and the electricity metering system.
The network companies responsible for electricity transmission and distribution are ESB Networks and EirGrid.
The CRU reviews budgetary requests from the network companies each year. Additional allowances are approved where the CRU considers they are needed, are in line with government objectives, and will provide a benefit to the consumers.
Why are Electricity Transmission & Distribution Charges Being Increased?
The electricity grid must be invested in, expanded and modernised on an ongoing basis to provide a secure and uninterrupted electricity supply. With no investment, the electricity assets would deteriorate, resulting in blackouts. There would be an inability to connect new buildings and businesses, with severe economic implications to both national productivity and employment.
Ireland is going through an unprecedented change in our demand for electricity. This includes:
- Normal economic expansion with businesses growing;
- Large electricity demand coming from data centres;
- Commercial and domestic microgeneration that require the ability to export back to the grid;
- Domestic customers are placing more demand on the grid as fossil fuel heating systems and transport are replaced with electric alternatives such as heat pumps and electric cars.
Specifically, the increased cost is due to (i) distribution charges are being increased by 19% this year, with the revenue requirement set at €1.34 billion, and (ii) transmission charges being increased by 6.5% with the revenue requirement set at €1.5 billion.
The CRU decision papers are available by clicking DUoS 2025/2026 charges and TUoS 2025/2026 charges.
How Utilityfair Can Help You Reduce Business Electricity Costs?
Electricity regulatory charges are unavoidable. However, you can reduce your total electricity bill by securing a more competitive electricity supply rate. That's where Utilityfair comes in. You can quickly compare rates from all suppliers in one place, completely free. No more wasting time phoning each supplier individually or waiting on hold. We will:
- Analyse your meter type and usage profile.
- Compare fixed, flexible, and tracker tariffs.
- Identify any hidden charges and unbundled costs.
- Monitor your contract expiry so you're never auto-rolled to expensive rates.
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Frequently Asked Questions
Electricity regulated charges (also called "pass-through" or "non-energy" charges) are costs approved by the CRU to maintain and develop the electricity grid. These charges are included in your electricity bill but do not generate profit for suppliers.
From 1 October 2025, regulated electricity charges will rise by about +1.3 c/kWh for daytime use and +0.8 c/kWh at night. This equates to roughly a 4% increase on business electricity bills for both daytime and nighttime usage.
Pass-through charges (also called non-energy charges) cover the cost of using the grid. Suppliers are legally required to pass them on without profit. They include transmission, distribution, and capacity charges.
Charges are rising to support grid expansion, connect offshore wind farms, maintain infrastructure, and handle higher demand from data centres, electric vehicles, and heat pumps.
The PSO Levy will be reduced by around 40% from October 2025. While this provides some relief, the saving is smaller than the increase in transmission and distribution charges.
While regulated charges are increasing, wholesale market prices and supplier tariffs remain competitive. Businesses can still lower overall costs by securing the best supply contract.
You can’t avoid regulated charges, but you can offset them with energy efficiency and by switching to a better electricity tariff. Utilityfair offers free bill analysis to identify the best deal.
Grid fees include the costs of operating and maintaining the national transmission and distribution networks. These fees fund ESB Networks and EirGrid, ensuring secure electricity supply.
DUoS (Distribution Use of System) and TUoS (Transmission Use of System) are the technical names for regulatory grid charges. Together, they make up a significant portion of non-energy costs on electricity bills.
Yes. Even though regulated charges are fixed, supply rates vary widely. Comparing suppliers helps reduce overall bills. Utilityfair compares offers across the market for Irish businesses.
