Energy Arrears Surge: Nearly 320,000 Irish Households Struggle with Bills
The number of households in Ireland unable to pay their energy bills reached almost 320,000 in December 2025, marking a significant increase of nearly 20% compared to the same period the previous year. This worrying trend underscores the continuing financial strain on families despite easing wholesale energy prices, and raises concerns about the potential for further hardship if government support measures are not extended. The figures, released by the Commission for Regulation of Utilities (CRU), reveal a deepening crisis in affordability, with a substantial rise in both the number of customers in arrears and the total amount of outstanding debt.
The December figure represents an increase of over 50,000 customers in energy arrears compared to December 2024, when 264,458 households were unable to meet their energy obligations. The final two months of the year saw a particularly sharp rise, with arrears climbing from over 303,000 in November to nearly 320,000 in December – a month-on-month increase exceeding 5%. This escalating debt burden is prompting calls for increased government intervention and more flexible payment options from energy suppliers.
Rising Arrears Across Gas and Electricity
The CRU data highlights that a significant proportion of gas customers are struggling to pay their bills. In December 2025, 26% of all domestic gas customers were in arrears, meaning they were unable to pay either part or all of their bill. While the percentage of electricity customers in arrears was lower, at 14%, the sheer volume of electricity consumers means a substantial number of households are facing disconnection threats. The situation is particularly concerning given that energy prices, while down from their peak, remain at relatively high levels.
Adding to the financial pressure, the average amount owed by electricity customers increased by 10% year-on-year. Interestingly, the average debt owed by gas customers saw a slight decrease of 1%, but this marginal improvement does not offset the overall trend of rising arrears. The CRU’s findings suggest that even with stabilizing wholesale markets, other economic factors are making it increasingly difficult for households to manage their energy costs. The regulator has warned that without continued support, arrears levels could worsen.
CRU Measures and the Disconnection Moratorium
In response to the growing crisis, the Commission for Regulation of Utilities (CRU) has been implementing measures to protect vulnerable customers. Recent changes include adjustments to the disconnection moratorium – the period during which suppliers are prohibited from disconnecting customers during the winter months. Previously, suppliers were required to offer more flexible payment plans allowing customers up to 24 months to repay their debt. Though, the CRU has shortened this period to 18 months for the coming winter, a move the regulator believes will encourage more proactive debt management. The CRU stated that a longer moratorium “did not help them in the long term.”
This decision, however, has drawn criticism from consumer advocacy groups who argue that shortening the repayment period could place further strain on already struggling households. They contend that longer repayment plans are essential for allowing families to manage their finances and avoid disconnection. The CRU maintains that the changes are part of a broader strategy to ensure sustainable debt management and prevent the accumulation of unmanageable arrears.
Impact of Electricity Network Investment and Government Credits
The rising arrears come as Irish households are also facing a €100 increase to their bills to fund ongoing investment in the country’s electricity network. This additional cost, announced by the CRU, is intended to modernize the grid and ensure a reliable energy supply. However, it adds to the financial burden on consumers already grappling with high energy prices and cost-of-living pressures. The CRU acknowledges the impact of this increase and emphasizes the need for continued support measures to mitigate the financial strain on vulnerable customers.
A key factor influencing arrears levels is the availability of government electricity credits. The CRU has explicitly warned that if the government does not reinstate these credits in the upcoming budget, arrears levels could increase even further. These credits, which provide direct financial assistance to households, have proven effective in helping families manage their energy bills and avoid falling into arrears. The potential removal of this support is a major concern for both the CRU and consumer advocacy groups.
Broader Economic Context and Future Outlook
The surge in energy arrears is occurring against a backdrop of broader economic challenges in Ireland. While inflation has cooled from its peak, the cost of living remains high, and many households are still struggling to cope with rising prices for essential goods and services. Wage growth has not kept pace with inflation for many workers, leaving them with less disposable income to cover their energy bills. The combination of these factors is creating a perfect storm for energy arrears, and the situation is likely to worsen if economic conditions do not improve.
The CRU is continuing to monitor the situation closely and is working with energy suppliers to develop and implement measures to support vulnerable customers. These measures include offering flexible payment plans, providing debt advice, and ensuring that customers are aware of the support available to them. However, the CRU acknowledges that a comprehensive solution requires a coordinated effort from government, regulators, and energy suppliers.
Judicial Review of CRU Decisions
The Commission for Regulation of Utilities (CRU) has also been subject to legal challenges. In October 2025, a company initiated judicial review proceedings against the CRU and EirGrid, as reported by the Irish Times. The details of this legal challenge remain confidential, but it highlights the complex regulatory landscape surrounding the energy sector in Ireland and the potential for disputes between stakeholders.
Looking ahead, the CRU is expected to publish further updates on arrears levels and the effectiveness of its support measures. The upcoming budget will be a critical moment, as the government will decide whether to reinstate the electricity credits that have proven so vital in helping households manage their energy bills. The decisions made in the coming months will have a significant impact on the financial well-being of hundreds of thousands of Irish families.
Key Takeaways:
- Energy arrears in Ireland surged to nearly 320,000 households in December 2025, a 20% increase year-on-year.
- The CRU has shortened the repayment period for energy debt from 24 to 18 months, a move criticized by some consumer groups.
- A €100 increase to electricity bills to fund network investment is adding to the financial burden on households.
- The potential removal of government electricity credits could lead to a further increase in arrears.
The CRU is scheduled to release its next report on energy arrears in April 2026. We encourage readers to share their experiences and perspectives on this critical issue in the comments below.