Price Review 6 Strategy
The CRU has published a strategy paper for Price Review Six which will inform and seek comments from customers, network users and relevant stakeholders on the approach to deciding on the funding for the network for the 2026-2030 period.
Read the PR6 paper.
The CRU has published a strategy paper for Price Review Six which will inform and seek comments from customers, network users and relevant stakeholders on the approach to deciding on the funding for the network for the 2026-2030 period.
As the economic regulator of the electricity network operators ESB Networks and EirGrid, the CRU’s role is to protect electricity customers by ensuring that the network companies spend customers’ money appropriately and efficiently to deliver necessary services and make necessary investments in infrastructure.
The CRU sets Price Reviews on a five yearly basis, which determines the revenues that the network companies can recover from electricity customers through network tariffs. The network tariffs recover the cost of building, safely operating and maintaining the electricity system in Ireland. The revenue allowances are collected from suppliers via the use of system charges and charges per unit of electricity that they buy, which is then passed on to customers in their electricity bills.
As with all Price Reviews, the CRU will undertake a detailed analysis of the network companies' business cases. This includes benchmarking assessments, calculating of efficiency challenges, determining the cost of capital and the establishment of a regulatory framework to adjust allowed revenues and monitor ongoing performance.
The current Price Review, PR5, is coming to an end in 2025. This provided access to the funds necessary to deliver on the 2019 Climate Action Plan and placed strong incentives on EirGrid and ESB Networks to facilitate the transition to a low-carbon future and better services for customers.
The upcoming Price Review Six (“PR6”) will cover the period 2026-2030 and will reflect on the major policy developments that have occurred nationally and at European level. It is critical that throughout PR6, network companies provide resilient electricity networks and supplies while supporting high-quality, secure and cost-effective services to customers and networks users.
In addition to the objectives of delivering infrastructure at pace, enhancing system efficiency and driving smarter, flexible, more digitally enabled networks, this Price Review will reflect the Government’s approval of the Offshore Electricity Transmission System Policy. This designated EirGrid as the offshore system operator and asset owner and the CRU has set a further objective for EirGrid to successfully establish its Offshore Asset Owner (“OAO”) functions and operations.
Commenting on the Strategy, CRU Chairperson Jim Gannon said, “This price review period 2026-2030 will perhaps be one of the most important in terms of the transition to a low-carbon future and the continued need to invest appropriately in future proofing the network to cater for increasing electricity demand. The integration of offshore wind will be an added challenge that will require significant development of our distribution and transmission systems. This needs to be delivered as efficiently as possible to ensure both value for the end user and provide a sustainable and flexible network that will support the development for the next five years and beyond.”