Below we break down exactly how that number is built up and how to bring it down.
What makes up your electricity bill
Every Irish electricity bill is built from three charges plus VAT:
- Unit rate — what you pay for each kilowatt-hour (kWh) of electricity you actually use.
- Standing charge — a fixed daily fee for being connected to the grid. You pay it even if you use nothing.
- PSO levy — the Public Service Obligation levy, a government charge supporting renewable and security-of-supply generation.
VAT on domestic electricity is currently 9%, and the unit and standing-charge figures suppliers quote are usually inclusive of it.
Current unit rates
The unit rate is the biggest variable. SEAI publishes quarterly reference rates from the EU Price Survey, and suppliers set their own:
| Source | Band / product | Unit rate |
|---|---|---|
| SEAI reference (Band DC) | 2,500–5,000 kWh/yr | 40.42 c/kWh (collected, 2026-07-01) |
| SEAI reference (Band DD) | 5,000–15,000 kWh/yr | 34.38 c/kWh (collected, 2026-07-01) |
| Electric Ireland | Standard | 31.95 c/kWh (collected, 2026-10-11) |
Most homes without electric heating fall in Band DC, so that is the most representative reference rate for an average household.
Source: SEAI Domestic Fuel Cost Comparison, source date 1 July 2026 (automatically collected)The PSO levy
The PSO levy is set annually by the CRU and applied to every electricity account:
The current PSO levy is €1.46/month (manual, 2025-12-01).
Source: SEAI, source date 1 December 2025 (manually researched)An illustrative energy-only calculation
For an illustrative household using 4,200 kWh/year, energy charges at the published reference rate are €1,698 per year. This is usage multiplied by the rate, with cents converted to euro. It is not a measured national average bill.
Add your supplier’s standing charge and applicable levies, then account for VAT according to how your quote presents its prices. Avoid adding VAT twice to VAT-inclusive rates. Discounts and time-of-use periods can change the result. Use your own annual statement for a useful comparison.
Source: SEAI Domestic Fuel Cost Comparison, source date 1 July 2026 (automatically collected)How your usage compares
| Household type | Typical annual use | Likely SEAI band |
|---|---|---|
| Apartment / low use | 2,000–3,000 kWh | DA / DC |
| Average family home | ~4,200 kWh | DC |
| Home with heat pump or EV | 6,000–15,000 kWh | DD |
If you have a heat pump or EV, you will use far more electricity but can offset it with a night-rate tariff — see our note on average gas bills and heat pump vs oil running costs for how heating choices change the picture.
Practical ways to cut your electricity bill
- Switch supplier: new-customer discounts of 20–30% off standard rates are common. Compare the complete annual cost and contract terms, not just the unit discount.
- Use a night-rate tariff if you have a heat pump, EV or storage heating — night units can be less than half the day rate.
- Cut standby loads: TVs, consoles and chargers left on can add 5–10% to a bill. Smart plugs help.
- Switch to LED lighting — roughly 90% less energy than old halogen or incandescent bulbs.
- Improve your BER — a better-insulated, more efficient home uses less. See how to improve your BER rating.
- Consider solar PV — generating your own daytime electricity cuts imported units. See solar PV costs in Ireland.
Next steps
The single fastest saving is usually a supplier switch. Compare live rates in our cheapest electricity guide, and if you are planning insulation or a heat pump, check your grant eligibility before you spend.