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Irish Independent
a day ago
- Business
- Irish Independent
Ireland is the second most expensive country in the EU
They show that Ireland is the second most expensive country in the European Union for typical goods and services. Prices here are 38pc above the EU average. We are only behind Denmark when it comes to high prices. Back in 2015 prices were 28pc above average in this country. But since then Ireland has been slowly climbing the 'league of shame' when it comes to the cost of living. The findings from the European statistics agency, Eurostat, will put a new focus on the Government's determination not to pay out universal cost-of-living packages for households in this year's Budget. Eurostat found that when it comes to alcohol and tobacco, prices in Ireland are the most expensive in the EU. They are more than double EU average. Finance expert Daragh Cassidy of price comparison site said this is due to government taxation, and more recently, minimum unit pricing on alcohol. When it comes to alcohol alone, prices here are the second highest in the EU, after Finland. Our prices are almost 198pc of the EU average, or close to double what people are paying in other European countries. Food and non-alcoholic drink prices in Ireland are the third highest in the EU, despite this country being a huge producer of agricultural produce. ADVERTISEMENT We are only behind Luxembourg and Denmark when it comes to food prices. They are almost 15pc above the EU average. However, this is an improvement on recent years, as prices were over 21pc above average in 2020. Restaurant and hotel prices are the second highest in the EU, behind only Denmark, at 29pc above average. Communications costs are almost 40pc above average. And Ireland is also the third most expensive country for electricity, gas and fuel with prices over 17pc above average. In better news, clothing prices are actually 1pc below the EU average and cheaper than in Lithuania, Latvia and Poland. Non-EU countries Iceland, Norway and Switzerland were also included in the research and generally have prices higher than Ireland's. Mr Cassidy of said we have known for a while that Ireland is an expensive country and these figures from Eurostat confirm it. 'There are several reasons why prices here are so high. 'These include: our higher wages, a lack of competition in certain sectors, high taxation on certain goods such as tobacco, alcohol and fuel, and lower government subsidies in certain areas such as public transport and childcare compared to our European neighbours.' He said businesses are also faced with high insurance and energy costs, which then get passed on to consumers. Mr Cassidy said Ireland will never be a cheap place to live. 'And it's worth noting that many of the world's most expensive countries such as Switzerland, Iceland and Denmark also have some of the highest standards of living in the world.' He said that wages in Ireland, while high by international standards, generally don't match the salaries in these countries. At the same time, taxpayers in more expensive countries tend to get back more from the Government in terms of better and more affordable healthcare, childcare and public transport — though there have been welcome improvements made here in Ireland in recent years, Mr Cassidy said. He called for the Government to lower our standard rate of VAT, which at 23pc is one of the highest in the world.
Irish Independent
12-06-2025
- Business
- Irish Independent
Levy on electricity bills to subsidise wind farms set to fall
Energy regulator, the Commission for the Regulation of Utilities, has decided to set the levy at €1.94 a month from October. This works out at €23 a year, and is half of what the Public Services Obligation (PSO) levy is at the moment. Electricity prices in this country are already among the highest in Europe However, it comes after a warning this week that household electricity bills are to be hit with an increase by at least €83 a year to pay for a major upgrade of the country's power system. Households currently pay on average €254 per year as part of their bill to help fund annual upgrades but that would increase to €337 next year under the current proposal. ESB Networks has asked the energy regulator to approve a price increase that would enable it to fund investment of between €10.1bn and €13.4bn over the next five years. At the lower estimate, the average residential bill-holder would be charged €1.60 extra per week, totalling €83 per year or €415 over the investment period. This is on top of the standing charge imposed on electricity bills. The CRU is tasked with working out how much money wind farms and solar panel operators will need each year to enable them to supply electricity. This is charged to households and companies in the form of the PSO levy. The regulator has now issued a decision paper which indicates that the PSO levy for 2025/26 has been calculated that €156.22m. This is the amount the CRU says will be required to support these renewable energy projects. 'This will result in a monthly charge of €1.94 and €7.59 for domestic and small commercial customers, respectively,' the CRU said. Last year it was revealed that the average household electricity bills was to rise by €100 over a year from last October after the energy regulator approved an increase in the funding needed to operate and develop the electricity grid. Daragh Cassidy of price comparison site said the proposed reduction in the PSO levy is obviously welcome. But wholesale electricity prices remain so high. This is why less money is needed to support renewable projects as they are already receiving enough money for the electricity they generate on the open market. 'But given how high prices remain, many households will probably be wondering why the levy is still needed at all,' he said. Mr Cassidy said the move towards net zero is going to be difficult and billions of euro is needed by EirGrid and the ESB over the coming years to help reinforce our grid in order to meet our climate targets. 'And while renewable energy should help electricity prices ease from their near-record highs over the coming years, some of the savings will be cancelled out by the money that's needed to invest in infrastructure like battery storage, interconnectors, and the grid itself to better manage all the renewable energy.' The executive said electricity prices in Ireland are still around 70pc to 80pc above where they were before the war in Ukraine broke out. It means the average household is still paying over €500 a year more for their electricity than they were only a few years ago. It is similar for gas. But it is highly unlikely prices will revert anywhere near to pre-war levels in the medium term unfortunately.
Irish Independent
30-05-2025
- Health
- Irish Independent
Smokers and vapers paying almost double the price non-smokers pay for life insurance and mortgage cover
Quitting smoking and vaping could save individuals and couples tens of thousands of euro over the lifetime of a mortgage protection, life insurance, and specified illness policy. Vapers are also being warned about the financial consequences of their habit, according to new research from price-comparison site and brokerage firm The research also shows the importance of shopping around, even for non-smokers. Ahead of World No Tobacco Day tomorrow, smokers are being encouraged to quit: not just for their health, but for their wallets too. The research showing that the cost of life insurance is almost double for smokers was carried out this month by comparing prices for smokers and non-smokers from the country's five leading life insurers: Aviva, Irish Life, New Ireland, Royal London Ireland, and Zurich Life. As well as being a price-comparison and switching website, is a broker for both life insurance and mortgages. Smokers would pay at least €192, a difference of almost €33,000 over the term When it comes to mortgage protection insurance, a 38-year-old couple could pay as little as €35.60 a month for €300,000 in cover over 30 years if they are both non-smokers. But if both are smokers, the cost jumps to €70. Bonkers said this is an increase of almost 97pc, or nearly €12,500, over the life of the policy. Mortgage protection cover is a legal requirement for anyone taking out a mortgage in Ireland. Adding €100,000 in specified illness cover to the same policy would cost €101 a month for non-smokers. But smokers would pay at least €192, a difference of almost €33,000 over the term. ADVERTISEMENT The gap is even wider for life cover. Life cover pays out a tax-free lump sum if one of the insured dies during the term of the policy and is considered an essential part of financial planning for families. A non-smoking couple could secure €300,000 in cover over 30 years for around €51 a month, while smokers would pay at least €104. This is a difference of almost 103pc, or almost €19,000 over the lifetime of the policy. And for a standalone specified illness policy, worth €150,000 over 30 years, non-smokers would pay €195.87 a month. Smokers would be charged €333.44 – almost €50,000 extra over the full term. While smoking has declined in recent decades, about 16pc of people aged 15 and over in Ireland still smoke either daily or occasionally, according to Census 2022. However, many more vape. Daragh Cassidy of said vapers, even if they have never smoked in their life, will still be treated as smokers by life insurers. World No Tobacco Day is on May 31 every year. It is an awareness day created by the World Health Organisation (WHO) to highlight the health risks associated with tobacco use. Mr Cassidy said: 'Quitting smoking really is good for your pocket as well as your health. It's not just the cost of cigarettes that you'll save on. As our research shows, the price you pay as a smoker for important life insurance products such as mortgage protection, term insurance, specified illness cover and income protection is often close to double what a non-smoker would pay. 'This means kicking the habit can save you tens of thousands of euro over the lifetime of these products.'
Extra.ie
06-05-2025
- Business
- Extra.ie
Irish households now paying the third highest electricity prices in Europe
Irish households are paying the third highest electricity prices in Europe, a new study has found. A recent report from Eurostat showed Irish customers are paying approximately 30% more per year than the average EU home. This means that customers are, on average, paying around €347 more per year for their electricity. According to the study, only those in Germany and Denmark are paying more. Irish households are paying the third highest electricity prices in Europe, a new study has found. Prices are also much higher in Ireland than those in non-EU countries such as Iceland and Norway. Estimated bills in Ireland remain 61% higher for electricity and 90% higher for gas, a stark contrast to pre-2020 energy price hikes, following the invasion of Ukraine by Russia. Daragh Cassidy, of price comparison site said Irish households have been paying electricity prices well above the EU average for some time now. A recent report from Eurostat showed Irish customers are paying approximately 30% more per year than the average EU home. 'So these latest figures from Eurostat aren't surprising, unfortunately,' he began. 'We've a relatively small and dispersed population with too much one-off housing so the costs for the upkeep of our electricity network are very high on a per capita basis,' he added. Sharing the further issues facing Irish grids, he referenced the rapid growth of the population in recent years as well as the increase in the number of data centres. This comes to around €347 more per year for electricity, according to the study, placing behind Germany and Denmark. Pic: Shutterstock 'This is putting pressure on the grid. And in recent years, we've had to procure high cost, high emission, emergency gas generation to plug the gap between electricity demand and supply,' Cassidy explained. Ireland's relatively isolated location also adds to the price issue, meaning Ireland can't import a huge amount of cheaper electricity from abroad. 'Though the interconnector we're building with France will hopefully improve things when it comes online in 2027 as it will allow us to tap into generally cheaper French electricity,' the expert added.
Irish Independent
28-04-2025
- Business
- Irish Independent
What the carbon tax increase means for you as household fuel costs set to rise
For a household using gas, the total carbon tax bill will rise by €17 to around €138 a year. People using home-heating oil will end up paying an extra €19 to fill a 900-litre home-heating oil tank after the May Day rise in the tax. Thursday's rise comes after it was revealed that the State's take from carbon taxes hit €1bn for the first time last year. Aontú leader Peadar Tóibín called for a review of the taxes on electricity, gas, home-heating oil, petrol and diesel after it emerged some taxes on energy and fuel have surged. Figures supplied to him by Finance Minister Paschal Donohoe show carbon tax receipts have doubled in the last five years. This led Mr Tóibín to accuse the Government of 'cashing in' on the cost-of-living crisis at a time when energy bills have increased. Filling a 900-litre home-heating oil tank will now cost households around €160 in carbon tax in total. However, this comes at a time when heating oil prices have fallen heavily, due to a sharp fall in crude-oil prices. The cost of 1,000 litres of the fuel is approaching €880, down from €1,000 at the start of the year, according to price-tracking website Higher carbon taxes on petrol and diesel were imposed soon after the Budget in October, adding around 3c to the cost of a litre of both motor fuels. The tax now adds up to around 17c on every litre of petrol and diesel. Carbon tax is applied to carbon-emitting fuels such as coal, oil, petrol, diesel and natural gas. ADVERTISEMENT Introduced in 2010, the tax is intended to reduce carbon dioxide emissions and is part of Ireland's strategy to support a greener and cleaner environment. It was raised by €7.50 to €63.50 per tonne of CO2 in last October's Budget. The rate of carbon tax is set to increase further in increments to €100 per tonne by 2030. However, as is now customary, the increase was postponed until May on home-heating fuels such as natural gas and home-heating oil. The carbon tax doesn't apply to electricity, where the PSO (Public Service Obligation) levy is applied. This is currently just over €42 a year, and is largely used to subsidise wind farms. Daragh Cassidy, head of communications at price-comparison and switching site said home-fuel prices were already at record levels. 'Gas prices are still around double what they were before the war in Ukraine broke out,' he said. Recent figures from the energy regulator showed that a quarter of all household gas customers were in arrears, he added. This works out at more than 171,000 households. 'So a further hike in gas costs is probably the last thing people need to hear,' Mr Cassidy said. 'Gas customers will now be paying around €138 a year to the Government in carbon tax alone. 'And by the end of the decade, this will increase to around €220 a year as the tax is set to increase to €100 per tonne by 2030.' Mr Cassidy said that to offset the tax, the easiest step for gas customers to take would be to switch supplier. Customers who switch can get discounts of more than 20pc from their new supplier for an entire year, which would more than negate the tax increase.
