Electricity Distribution Network Allowed Revenues for 2025 and DUoS Tariffs for 2024/25

The CRU has published an Information Paper on the Electricity Distribution Network Allowed Revenues for 2025 and the associated Distribution Use of System (DUoS) tariffs and Distribution Loss Adjustment Factors (DLAFs) for the 2024/25 tariff year.

This Information Paper sets out the update to the Allowed Revenues that the distribution system operator, ESB Networks, may recover during the calendar year 2025.

The final 2025 allowed revenues of €1,124.15m (nominal) leads to a tariff year revenue of €1,139.5m, which is to be recovered during the tariff period 1 October 2024 to 30 September 2025. This represents a tariff year (2024/25) decrease of circa 0.33% relative to the €1,143.3m that was approved for recovery during the previous tariff year (2023/24), with the primary driver being inflation.

Furthermore, this paper sets out the CRU’s decision on the associated Distribution Use of System (DUoS) tariffs and Distribution Loss Adjustment Factors (DLAFs) that will apply to demand customers from 1 October 2024 to 30 September 2025.

In recent years, there have been major policy developments at national and European level that continue to drive significant change in the energy sector. The CRU recognises the need for acceleration of actions within the Climate Action Plans, including the most recent Climate Action Plan 2024, which are essential to address Ireland’s renewable energy ambitions, climate change and security of supply. These actions require the DSO to, inter alia, increase system flexibility through demand initiatives designed to enable low / zero carbon demand growth.

The distribution Average Unit Price (AUP) for the 2024/25 period is expected to be 4.66c/kWh which is an increase of circa 3.3% relative to the current AUP. The CRU continues to support justified and essential investment in the electricity system. Additional allowances are only provided where they are needed, additional and to the benefit of the consumer.

The combined transmission and distribution AUP for the 2024/25 period is estimated to be 7.31c/kWh, which is an increase of circa 15.6% relative to the current combined AUP.

The CRU expects that the combined transmission and distribution adjustments will result in the average residential customer’s annual electricity bill increasing by circa €8.42 per month, or circa €101 for 12 months from October 2024 - September 2025.

In the 2023/24 tariff year domestic customers benefited from a reduction in their annual bills from the implementation of the LEU Rebalancing error correction. For 2024/25, this benefit no longer applies.

A customer’s annual bill also depends on other factors such as wholesale market costs (which are in turn driven by factors such as international commodity prices), capacity market costs, and other system costs. Additionally, the DUoS tariffs are charged to suppliers, who may choose how, or whether, to pass them on to their customers.