Over a million customers could see electricity bills rise by almost €90 this year

Electric Ireland, Prepaypower and Pinergy are all increasing electricity prices

The PSO levy, which is charged to all electricity customers in Ireland, is set to increase by 130% this month

Over one million customers could see their electricity bills rise by almost €90 a year due to price hikes from Ireland’s largest energy suppliers and an increase in the Public Service Obligation (PSO) levy.

The PSO levy, which is charged to all electricity customers in Ireland and used to support the renewable energy sector, is set to increase by 130% this month, from €38.68 to €88.80 (including VAT).

In addition, many electricity companies are hiking their prices due to “increased electricity network operating costs.” 

Customers of Electric Ireland, the country’s biggest electricity supplier, will have to contend with a 3.4% increase in the unit price of their electricity, adding around €35 a year to the average annual bill. This, in combination with the rise in the PSO levy, will see almost €90 a year added to their electricity bill.

Customers of Prepaypower will be faced with a price rise of 2.9%, while Pinergy will increase domestic electricity costs by 2.7% from next month. For a typical household, this would mean about €28 more on top of their usual estimated annual bill (EAB).

Daragh Cassidy of comparison and switching site bonkers.ie, said it’s important consumers switch suppliers regularly to ensure they’re getting value for money.

“Businesses seldom reward loyalty and if you want to be on the best deal you have to shop around regularly. You can’t presume that just because you’ve been with a particular supplier for several years that they’ll return the favour with cheaper prices. If anything it’s the opposite."

“At a time when energy usage in the home has probably never been higher due to more of us working and socializing at home due to Covid, it’s really important that people switch supplier regularly to ensure they’re getting the very best value," he added.

On the back of the price hikes across the board, Mr Cassidy advised customers to look at energy companies introductory rates to those who switch providers.

“Discounts of over 40% are now available to those who switch, meaning you could save yourself almost €500 a year right now just by switching.” 

 “If you live in a poorly insulated home or in a home with more than three bedrooms, your savings are likely to be even more," he said.