Energia the latest supplier to hike prices

It is the second time this year the company has upped its prices. 

Energia has become the latest energy company to announce yet another price hike to hit Irish households, with electricity bills to rise to around €510 a year and the average gas bill to rise €521.

Dual fuel customers will face an annual rise of €1,030 to their bills, with the rise effective from Friday 7 October.

The move will affect around 160,000 electricity customers and 60,000 gas customers. However, there will be no increase to night rates for those customers on Smart tariffs.

Energia hiked its prices in April, and on three occasions in 2021.

It has become the latest company to hit customers with a surge in their energy bills, with new rises due to come in soon from the likes of Electric Ireland, Bord Gáis Energy, SSE Airtricity and Prepay Power.

Darragh Cassidy, from comparison website Bonkers.ie, said the move from Energia “brings to an end this cycle of rate hike announcements”.

But, he added, “the question is when the next one begins” as it is almost certain customers will face further price increases again in a few month.

In a statement, Energia said that wholesale prices for gas and electricity in Ireland are at unprecedented levels and that suppliers cannot absorb increases of that scale.

Garry Ryan, Energia's managing director of customer solutions, said: “We are acutely aware of the very regrettable impact that successive price rises are having on households and we welcome the Government’s intention to intervene in the upcoming budget to support customers.” 

In a warning of things to come, Mr Ryan said that the outlook for this winter is “extremely concerning and the cost of measures to protect customers from the worst of these effects has to be measured in billions and not millions”.

Earlier today, Energy Minister Eamon Ryan indicated a second electricity credit would be given to households in Ireland this winter, but it is not clear how much that will be.

Meanwhile, the EU has said its planning five “immediate moves” to tame runaway energy prices.

Ursula von der Leyen said the EU will:

• Put a price cap on Russian gas;
• bring in a mandatory target for states to reduce peak demand;
• place a cap on the revenues of electricity companies who are using low-carbon fuels; 
• ask for a "solidarity contribution" from fossil fuel companies who are making massive profits; 
• allow countries to give liquidity supports to utility companies.

Ministers from EU countries are set to discuss the measures later this week.

Mr Cassidy said a cap on energy prices which has been mooted in the UK would cost over €10bn and leave the Government with little room for any other type of measures in the Budget.

“There are no easy answers,” he said. “The upcoming emergency EU energy summit where a reform of the electricity market is on the cards may hopefully yield some more affordable solutions.

“I welcome Energia’s decision not to increase the standing charge for all customers or the night-time electricity rate for those customers on Smart tariffs. If the Government wants to encourage households to use more energy off-peak to help avoid blackouts then energy suppliers really need to offer better incentives (cheaper prices) to do so.”