Harris defends energy price hikes as ‘investment to ultimately reduce prices’

Simon Harris has defended an energy price rise announced on Tuesday, saying the Government had “taken steps” and would be “taking further steps” to try and reduce energy prices.

He was speaking to reporters after the Commission for Energy Regulation (CRU) announced price increases of up to 1.75 euro a month to help fund improvements to the national grid and electricity network.

He said: “I do appreciate that the cost of electricity, cost of energy bills are high.

“It is a real worry for people, but I would say we have taken steps in this Budget to try and help.

“And we will be taking further steps through investing in the energy network to try and ultimately reduce prices over time.”

The Tanaiste pointed out that the investment of up to 18.9 billion euro between 2026 and 2030 would also be funded by direct investment by the state and a “significant” amount of funding would come from the bond market.

He also said that under the CRU ruling, it was up to the energy companies to consider how much of the cost would be passed on to consumers.

Mr Harris acknowledged that the “cost of energy in Ireland is high”, but said the “prize in return for that” was a more secure and resilient energy supply and “ultimately cheaper energy”.

The CRU said the investment would see ESB Networks and EirGrid embark on a period of “unprecedented” grid and network development and delivery from 2026.

It added that existing assets would be upgraded, new electricity infrastructure would be developed and that the network would be enhanced to be more resilient against extreme weather events.

The commission said the project was “critical for enabling the transition to a low-carbon electricity system” and would support renewable generation and offshore grid development.