Households paying twice as much as data centres for electricity
Households paying twice as much as data centres for electricity - The Labour Party
Labour’s spokesperson for Energy and TD for Dublin South-West, Ciarán Ahern TD, has raised serious concerns about the Government’s commitment to reducing household energy bills, following new Eurostat figures showing that households are paying twice as much for electricity as data centres.
Speaking during Questions on Policy or Legislation in the Dáil today, Deputy Ahern said the figures expose a stark imbalance at the heart of Government energy policy.
Deputy Ahern said:
“Not only are data centres placing enormous pressure on our electricity grid, forcing the Government to commit around €1 billion to upgrades, they are also absorbing the vast majority of new renewable energy being generated. That is hampering decarbonisation across other sectors of our economy. Yet despite this impact, they are not paying their fair share.
“Data centres are expected to account for around 30 per cent of national electricity demand by 2030. They already account for roughly 50 per cent of electricity consumption in Dublin and Meath. This scale of demand from large energy users is driving up costs for ordinary billpayers.
“Households are effectively subsidising data centres through higher network tariffs. At a time when families are struggling with the cost of living, it is unacceptable that they are paying double the price for electricity compared to multinational conglomerates.
“The Government needs to get a grip. Either they are asleep at the wheel or they have chosen to side with big corporations over ordinary workers and families.
“They have failed to properly regulate data centre expansion and there is a clear lack of competition between energy suppliers. They are planning to import highly polluting fracked gas from the United States to safeguard supply for a small number of large energy users. They are investing heavily in grid upgrades primarily to meet data centre demand, and those costs will ultimately be borne by regular consumers.
“And to add insult to injury, the Government’s much-trumpeted Energy Affordability Taskforce, which was meant to tackle energy poverty and rising bills, has met just three times. That speaks volumes about their priorities.
“We also know that following Price Review 6, data centres and other large energy users will receive a discount on certain energy costs. For households already paying twice as much for electricity, that is a bitter pill to swallow.
“It is not good enough for Government to deflect responsibility onto the CRU. While the regulator operates independently, this is a broader policy choice. Ministers must explain how we have reached a point where mega-corporations are being granted discounts while ordinary households are left footing the bill.
“I’m calling on Government to urgently rebalance energy policy so that protecting households, tackling energy poverty and accelerating a fair transition to renewables take precedence over facilitating unchecked data centre expansion.”