Blow to customers as Electric Ireland raises gas and electricity prices for second time this year

Electric Ireland has announced that it is increasing residential electricity and gas prices. Picture: Yui Mok/PA Wire

Electric Ireland has announced the latest hike in a streak of energy price increases amongst Irish suppliers.

Electric Ireland is increasing the price of its electricity by 9.3% and the price of its gas by 7% from  November 1. This will add around €108 a year to the average household’s annual electricity bill and €58 to the average annual gas bill.

This is the second time it has raised its energy prices this year. Electric Ireland last increased its prices in August, when it upped the price of its electricity by 9% and its gas by 7.8%.

Taking the August price increases into account, households will be paying around €208 a year more for their electricity and €120 more for their gas.

The move will impact around 1.1m electricity customers and 145,000 gas customers.

The raft of price increases announced this year have been triggered by skyrocketing wholesale energy costs and wider issues with the energy market.

There have been over 30 price hike announcements from Irish energy suppliers since the start of the year, and some suppliers have raised prices several times.

Daragh Cassidy, head of communications at bonkers.ie, said the news is not unexpected given all the recent price increases that we’ve seen.

“This is Electric Ireland's second price increase this year. But several suppliers have raised prices three times already while Panda Power has raised its prices four times,” he said.

“Some suppliers have announced price hikes that will add up to €800 a year to energy bills. So Electric Ireland’s price increases are at the lower end of the scale.

“Still, as we move into the darker and colder months when energy demand around the home typically soars, many households will feel the pinch,” he added.

Mr Cassidy attributes rising energy costs to several factors: rising demand for fossil fuels as the world economy opens back up, Covid-related supply chain bottlenecks, unusually low levels of wind output, and the fact that two large power plants in Cork and Dublin remain out of action for maintenance reasons.

“Price increases of this magnitude and frequency are unsustainable. And coupled with recent concerns about potential power outages and pressure demands on the grid, it’s not an exaggeration to say we’re in the midst of an energy crisis,” said Mr Cassidy.

He advised energy customers to try shopping around, as the average switcher could save around €500 a year just by changing supplier.

Gerry Garvey, regional Coordinator for the South West with Saint Vincent de Paul, says they are seeing an increase in calls from people concerned about rising utility costs.

“We’re quite concerned about the impending rise in utility costs and fuel costs right across the board, and we feel it's going to put even more pressure on a very vulnerable and marginalised community that we support,” he said.

“A lot of them are already struggling to make ends meet, and any increase like that just hits straight into them. Coming into the high fuel season, things can only get worse,” he added.