The Economic and Social Research Institute (ESRI) is warning changes to the electricity market could mean higher costs and less transparency around prices.

The market is being redesigned to comply with European Union rules from 2017.

Researchers say advance trading and interconnection are the best ways to ensure competition in pricing - but Ireland is limited in those two areas.

That means regulators will have to rely on continuous monitoring and regulation of bids made by companies, but the new structure could mean it is not so easy.

The ESRI says the Irish electricity market today is characterised by one dominant firm ESB, which the ESRI describes as "the legacy monopolist."

The research highlights the need for regulation and market monitoring, to ensure the new electricity market design does not lead to higher prices for consumers.

Dr Muireann Lynch of the ESRI says the regulator could consider publishing final margins.

She also told Newstalk Breakfast that it is possible costs could increase.