CRU approves 2026/27 electricity network charges and reduced PSO Levy
The CRU has reduced network revenue allowances by €138 million, limiting the impact on a typical domestic electricity customer to an increase of c. €41.25 over the period, or €3.44 per month. The CRU has also approved a lower PSO Levy for 2026/27, with monthly PSO charges set to fall by 66% across all customer categories from 1 October 2026.
The Commission for Regulation of Utilities (CRU) has today approved the 2026/27 electricity network charges following its annual review of the network companies’ revenue submissions, with final allowances resulting in a lower customer impact than originally proposed, alongside a reduced Public Service Obligation (PSO) Levy.
Following its annual review of the network companies’ revenue submissions, the CRU has approved network revenue allowances of €1,582.51 million for distribution and €1,502.44 million for transmission that are €138 million lower than the combined total of revenues initially proposed by the network companies. The CRU reviewed this expenditure in line with its annual regulatory process, supporting the recovery of investment costs in a fair and transparent way for customers.
The revenue approved by CRU supports ESBN and EirGrid’s ongoing investment to upgrade Ireland’s electricity network and deliver critical new infrastructure to meet demand and will support renewable generation, offshore grid development, and improving security of supply and resilience.
Network costs are one element of the overall customer bill and represent circa 30% of an end user's overall cost of energy to the home. This annual investment in our energy network is part of the overall PR6 investment of up to € 18bn required over the next five years.
For a typical domestic customer, the impact on network charges on the electricity bill is expected to be an increase of c. €41.25 over the period (€3.44 per month). This is around €13 less than if the network companies’ requests had been approved in full, reflecting the CRU’s review of the costs to ensure customers pay only for necessary and justified investment. These charges will apply to suppliers from 1 October 2026 to 30 September 2027.
The CRU has approved electricity network revenue allowances for 2027 of €1,582.51 million for distribution and €1,502.44 million for transmission, both in 2027 prices. This represents an 18.4% increase on the 2026 allowed revenues for distribution and an 8.1% increase on the 2026 allowed revenues for transmission. Network charges fund critical upgrades, maintenance and reinforcement needed to safely operate, develop and maintain Ireland’s electricity grid, supporting a reliable and resilient electricity supply and increasing capacity for new homes, businesses, renewable generation, transport and heating.
The CRU has also approved the 2026/27 Public Service Obligation (PSO) Levy at €41.48 million. This is €83.9 million lower than the 2025/26 funding requirement of €125.38 million. From 1 October 2026, this will result in a small positive levy for customers, with monthly charges of €0.51 for domestic customers, €1.93 for small commercial customers and €0.24/kVA for medium and large commercial customers. This represents a 66% decrease across all customer categories. The levy helps cover the additional costs of renewable energy projects.
Through its rigorous review of the network companies’ annual revenue requests, the CRU assesses whether proposed costs are necessary, efficient and justified, while the PSO Levy is calculated in line with the relevant support schemes and funding requirements. This approach reflects the CRU’s focus on balancing required investment and scheme costs with the impact on customers.
The full PSO decision paper along with the 2026/27 tariff decision confirmed in the annual Transmission and Distribution Information Papers can be found on www.cru.ie.
Commenting on the decision, Chairperson of the CRU, Fergal Mulligan said:
“At a time when affordability remains a significant concern for electricity customers, the CRU’s role is to protect customers by ensuring that the costs reflected in bills are necessary, efficient and justified. This year, our decisions have limited the increase to end users to the greatest extent possible while ensuring the necessary investment in our energy network continues at pace to cater for increasing demand and our use of more green energy.
Through our assessment of the network companies’ annual revenue requests, we have sought to balance the investment needed in a safe, reliable, and resilient electricity network with the impact on customers. Through the administration of the PSO levy the CRU ensure that renewable energy support schemes are funded transparently, efficiently and in the interest of customers, with appropriate oversight, while supporting Ireland’s transition to a secure low carbon electricity system.”