Electric Ireland announces another price hike for October 

Electric Ireland has announced another energy price hike that will be effective from October 1. 

Electric Ireland has announced another energy price hike that will be effective from October 1. 

It will increase residential electricity bills by 26.7% and residential gas bills by 37.5% with effect from October 1, 2022. 

The increases equate to €37.20 per month on the average residential electricity bill and €42.99 per month on the average residential gas bill, based on the estimated annual bill as defined by the Commission for Regulation of Utilities (CRU).

Around one million households are set to be impacted by the price hikes.

"This continues to be a very challenging time for customers, and an unprecedented time in the energy industry with increases to wholesale gas prices in excess of 700% over the last 12 months and 200% since June 2022 alone," said Pat Fenlon, Executive Director of Electric Ireland.

"It is with considerable reluctance that we are increasing electricity and gas prices again for our customers, which is necessary given the continuing increases in wholesale energy prices, particularly gas."

The supplier has said that the hike comes as a result of "the international energy crisis continuing to impact energy prices with unprecedented increases in wholesale gas in excess of 700% in the last 12 months and over 200% since June 2022 alone." 

"Electric Ireland continues to have a range of measures in place to support customers, including payment plans and a €3m Hardship Fund," a spokesperson said. 

The Public Service Obligation (PSO) Levy is accounted for in the price hike as well as VAT, Electric Ireland has said. 

The PSO Levy is calculated from October 1 when the utilities regulator is setting it to zero with a commitment to "implementing an enduring mechanism to enable payments to customers as soon as possible." 

From a customer impact point of view the levy, which is charged to all electricity customers in Ireland, will result in a yearly payment of €89.10 for domestic customers. 

Once this price hike is brought in, customers will see their electricity unit rate increase by 38.24%, whilst customers will see their gas unit rate increase by 47%. 

This is the third time this year that the energy supplier has hiked prices. In June Electric Ireland announced its second price hike, which saw electricity bill rise a further €164 a year and gas bills to rise €311 a year from August 1.

This latest hike comes as SSE Airtricity announced a price hike last month — a hike of 45.2% in its electricity unit rate and a 46.3% in its gas unit rate alongside an 8% increase in its standing charges.

More price hikes may be to come, according to Bonkers.ie’s head of communications Daragh Cassidy.

He said: “Price increases of this frequency and this magnitude are clearly unsustainable. And more price hikes from other suppliers later in the year, including SSE, are almost a certainty.

“Since the start of last year, some suppliers have announced even bigger price hikes that have added over €2,500 to households’ annual gas and electricity bills. It’s astronomical.” Mr Cassidy said the pressure will now switch to the Government on how to support households in the upcoming Budget.

He added: “Is the temporary reduction in VAT being kept? Is another energy credit going to be paid? Is the Government going to place a windfall tax on energy companies - and if so, how would this even work when many are headquartered overseas?”