New research by the Economic and Social Research Institute warns of the prospect of higher electricity prices once a redesign of the Irish electricity market comes into effect in 2017.

A research note claims new EU regulations on electricity trading will result in costs and prices becoming less transparent, resulting in consequences for customers.

The Irish electricity market is undergoing a major redesign in order to comply with new EU rules on electricity trading. 

The new rules will be effective in 2017 and will have implications for the way competition in the market is ensured. 

In the research note published today, the ESRI says Ireland's capacity for advance trading, or connecting to cheaper markets in Europe is limited. 

It also raises concerns about dominance of a single player in a concentrated market and the effect this might have on prices.

Researchers warn that the new market structure may not lend itself as easily to monitoring and regulation as the current market.

It recommends that the regulator should require supply companies to publish their margins to encourage competition and the dominant firm should face increased regulation.