It said our high energy costs are being driven by high wholesale gas costs and network charges.
But a report published by the Commission for the Regulation of Utilities (CRU) did concede more work needs to be carried out on profits being made in what it said were particular sectors of the electricity and gas markets in the State.
It comes as the Irish Independent was the first to reveal last week that Ireland now has the highest electricity prices in the European Union.
Prices here are around 40pc higher than the average in the EU which means households are paying €480 a year more for electricity than the European average.
Ireland has the highest electricity prices in the EU. Stock image
News in 90 Seconds – May 11th 2026
The regulator’s report into competition in the energy market was carried out with input from the Competition and Consumer Protection Commission.
Although it concluded that no evidence of profiteering by energy companies here, it said profit margins will be examined further in the full review of competition.
This will look at a variety of customer types and go back over time, to support what it said would be a more granular assessment.
“As part of this program of work, the CRU will deliver a number of reports, including a wider and more detailed review of competition in the retail energy markets.
“The wider review will further examine supplier margins in more detail and analyse market segments. This will involve extensive data collection, including a customer survey to help understand customer perspectives on the market,” the CRU report said.
The report, entitled ‘CRU Interim Review of the Electricity and Gas Retail Markets’, admits that prices are high in this country.
But it said elevated energy prices in Ireland are being driven by a number of factors including wholesale costs, Ireland’s network architecture, and network investment in support of a secure low carbon transition.
High costs are not be driven by any underlying issues or failures in the competition model, the report found.
The review was carried out at the request of Energy Minister Darragh O’Brien and is intended to provide input to the work of the National Energy Affordability Taskforce (NEAT).
The report provides a breakdown of each cost component that makes up a domestic tariff for electricity and natural gas customers.
These components were tracked over time, illustrating their changing impact on customer bills, the CRU said.
The analysis found that retail prices follow wholesale market prices but with a time lag.
The interim report has also found that competition in the Irish retail electricity and gas markets is working and is generating meaningful rivalry.
The regulator cited as proof of this the fact that consumers can choose from a range of suppliers, switching rates of domestic consumers are high and above EU average, and profit margins do not indicate that suppliers are making excessive margins.
There is no evidence of significant barriers to entry, the CRU and the CCPC said.
“At this point of the review process, data gathered to date from several suppliers indicates that margins remain relatively low and that supplier margins do not point to excessive profitability,” the CRU said.