The Electricity Supply Board (ESB) has reported a significant decline in its post-tax profits for last year, with figures falling to €706 million – a drop of €162 million or 19% compared to 2023.
According to the company’s annual report, the substantial reduction in profits was primarily attributed to decreases in wholesale energy prices throughout much of the year. Despite the notable decline, the ESB has proposed a dividend payment of €189 million to the exchequer, bringing the total dividends paid out over the past decade to €1.8 billion.
Speaking on RTÉ Radio One’s Morning Ireland, ESB Chief Financial Officer Paul Stapleton characterized the energy market as “incredibly volatile.” He noted that while reductions in wholesale costs ultimately benefit consumers, the pricing landscape remains unpredictable.
“Wholesale energy prices did increase in the second half of last year and peaked at the beginning of this year. However, those same prices have fallen by 20% in recent weeks,” Stapleton explained. “They’re still quite volatile. If the current downward trend in wholesale gas prices continues, that will ultimately lead to good news for consumers down the line, but it is a volatile position.”
Despite the profit reduction, Stapleton described the report as representing a “solid performance” from the firm. He emphasized that the ESB has invested €3 for every euro of post-tax profit back into infrastructure projects, with investments totaling €1.4 billion in energy infrastructure across Ireland and Northern Ireland last year.
According to The Journal, these investments primarily focused on increasing grid capacity and resilience, as well as connecting more renewable energy sources to the national grid. The company also acknowledged the significant impact of Storm Éowyn in its report, though Stapleton said they still do not have a specific cost estimate for the repairs, describing the weather event as “hugely disruptive.”
In response to the storm’s effects on customers, the ESB has committed to doubling its investments into the grid over the next five years to improve resilience and service reliability.