If you run a business in Ireland right now, you’ve probably noticed the uneasy murmur around commercial energy prices. September 2025 has brought that familiar, uncomfortable reality back into focus: costs are rising again, and commercial customers are bracing themselves for another round of higher charges.
This isn’t entirely new. Since 2022, businesses have been navigating energy prices that feel more like a rollercoaster than a stable utility bill. The peaks and drops have been sharp, unpredictable, and difficult to plan around. But this autumn comes with its own set of challenges, particularly with the return of the PSO levy, supplier adjustments, and the constant sway of wholesale electricity markets.
The PSO Levy Returns
Perhaps the most tangible change for businesses is the reintroduction of the Public Service Obligation levy. For the 2025/26 period, starting this October, small commercial users will see a charge of just over €93 a year. Larger businesses will feel the pinch more acutely, with €1.57 per kVA per month—so a company with a 200 kVA supply could be paying well over €2,000 annually just for this levy.
The PSO levy is designed to support renewable energy generation, which is undeniably important for the country’s climate commitments. But for the café owner in Limerick or the manufacturing firm outside Dublin, it simply shows up as another unavoidable line on the bill. And after enjoying a brief period when the levy was set at zero, its return feels particularly harsh.
What’s Happening with Wholesale Prices?
Wholesale electricity prices in Ireland are a story in themselves. On the one hand, we’ve seen significant drops since the record-breaking peaks of 2022. Back then, many businesses felt as though they were on the brink, with some paying more for electricity than for staff wages. Compared to that crisis point, today’s prices—down more than 70% since the peak—sound like good news.
But the reality isn’t quite that simple. Prices are still well above pre-crisis levels, and in recent months they’ve shown a frustrating habit of bouncing up and down. For example, in July prices were up 4.6% on the previous month, even though they were still lower than the same time last year. For businesses trying to plan their budgets, that volatility is exhausting. One month you might breathe a sigh of relief, only to find the next month’s bill creeping up again.
Suppliers Make Their Moves
Then there are the suppliers themselves. Flogas announced a 7% increase in August, which for households means an extra €126 a year. While that figure is often quoted in domestic terms, commercial customers aren’t immune. Similar percentage increases on a business contract can translate into hundreds, even thousands of euros in additional annual costs depending on energy usage.
SSE Airtricity also pushed through increases earlier this year—10.5% for electricity and 8.4% for gas. Even if you’re not with these particular providers, the reality is that the market tends to move together. When one supplier raises prices, others often follow, and few business owners can escape the ripple effect.
The Business Impact
What does this all mean on the ground? For many companies, energy is no longer a background cost you just pay without thinking. It has become a major factor in financial planning. Energy-intensive industries—think food processing plants, data centres, or manufacturing—are particularly exposed, but even small retailers and service businesses are feeling the squeeze.
Government officials have already voiced concern that Ireland’s relatively high power costs could deter new investment in energy-intensive sectors. If you’re trying to convince a multinational to set up operations here, electricity bills that are consistently higher than in competing countries don’t make for a strong sales pitch.
Searching for Solutions for Cheaper Business Energy
Faced with this landscape, Irish businesses are getting creative. Many are actively exploring renewable energy options—not just out of environmental responsibility, but as a hedge against volatility. Corporate Power Purchase Agreements (PPAs), where a business secures a long-term supply of renewable electricity at a fixed price, are gaining traction. Surveys suggest the majority of Irish firms would be willing to pay a little more for the stability and sustainability that renewables provide.
Others are investing in energy efficiency: upgrading equipment, shifting operations to off-peak hours, or even installing solar panels where space allows. For smaller businesses, the options might be more limited, but even basic changes—better insulation, energy-efficient lighting, or simply keeping a closer eye on usage—can add up over time.
The Road Ahead
So, where does this leave us as September 2025 unfolds? Businesses are caught in a delicate balancing act. On one side, there’s the relief that prices aren’t anywhere near the terrifying highs of 2022. On the other, there’s the disappointment that costs remain elevated compared to the pre-crisis norm, with new levies and supplier hikes making things worse. The truth is, energy in Ireland is unlikely to return to being “cheap” in the way it once was. The twin pressures of supporting renewable generation and maintaining an aging grid mean that businesses will continue to face higher baseline costs. The volatility of wholesale markets only adds to the uncertainty.
For commercial customers, the task is now about resilience. Whether that means locking in longer-term contracts for stability, exploring renewable supply deals, or making every possible efficiency upgrade, businesses are having to think about energy in a much more strategic way than before. In short, September 2025 is another reminder that energy is no longer just a utility—it’s a business risk to be managed. The sooner companies adapt to that mindset, the better prepared they’ll be for the fluctuations still to come. Contact Energy Experts Energy Brokers now.
