ESB to hit customers with 12% price increase

ESB has become the latest energy company to hike prices — despite one in eight of their customers being in arrears on their bills.

The company is increasing electricity prices by 12% from October 1, resulting in a €158 annual increase on the average bill.

It follows similar moves by Bord Gáis and Airtricity, which have both already announced price hikes.

At the start of this month Bord Gáis electricity customers saw their prices rise by 12% while Airtricity’s 500,000 customers were also told electricity prices will rise by 12.3% from the start of September and that gas prices will go up by 21.2% from October 1.

It is also expected that the Commission for Energy Regulation will announce early next week a price increase of about 22% for residential gas customers from October 1. Once this has been announced the ESB will increase its gas prices from October 1.

The increases will result in a jump of about €250 in the annual gas and electricity bills for customers.

According to bonkers.ie, from October 1 ESB will become the most expensive electricity supplier, with an average bill costing €1,027 compared with €974 for Airtricity and €965 for Bord Gáis.

ESB has 1.2 million electricity customers and about 20,000 gas customers. It said that 150,000 of its customers are in arrears for more than two months. The company has, however, put in place 220,000 payment plans so far this year, up from 80,000 last year.

It said that disconnections are down to about 350 a month from 900 last year as they are engaging with customers in difficulty at an earlier stage. The company is also introducing modern pay-as-you-go meters later this year.

ESB Electric Ireland general manager Liam Molloy said: “International energy prices have risen steeply over the past year and unfortunately we can no longer continue to absorb these increased costs without reflecting them in the prices we charge our customers.”

St Vincent de Paul said that it spent €5.9 million helping people clear arrears and debts on utility bills in 2009.

John-Mark McCafferty, head of social justice and policy for the organisation, said he expects to see figures of €6m-plus for both last year and this year.

“That is money that has been given to us by the public — and the bottom line is it is only going to get worse,” he warned.

St Vincent de Paul estimates one-fifth of households in Ireland are likely to experience some form of energy poverty, where 10% or more of disposable income goes on light, heat and power.

They also warned about pensioners facing deeper fuel poverty as some free schemes to help with payments have been cut.

The National Consumer Agency said consumers that are worried about paying their bills should contact their provider as soon as possible.

Price rises:

- Bord Gáis increased electricity charges by 12% on August 1.

- Airtricity will increase electricity charges by 12.3% from September 1 and gas by 21.2% on October 1.

- ESB Electric Ireland will increase electricity charges by 12% from October 1.

- The Commission for Energy Regulation is expected to give permission to Bord Gáis to increase gas prices by 22%, effective October 1.

- ESB Electric Ireland and Flogas are expected to announce gas price increases after the CER decision.