Electric Ireland to increase electricity prices by 8 per cent from July

Eva Osborne

Electric Ireland is to increase its electricity and gas prices from July 1st.

The supplier is increasing the unit rate of its electricity and gas by 9.5 per cent each, affecting 1.1 million electricity customers and 145,000 gas customers.

However, it is not increasing its standing charges. This means a typical electricity bill will go up by 8 per cent and a typical gas bill by 7.7 per cent, if based on average usage, according to the supplier.

The increase will add around €138 a year to the average household's electricity bill, and €117 to their gas bill, price comparison site Bonkers.ie said.

The increases come as Ireland was named the country with the highest households charges in the EU.

The average household in Ireland is paying around €480 a year more for its electricity compared to the EU average, according to a report from Eurostat.

Bonkers.ie is urging households struggling with high energy costs to consider switching supplier to avail of cheaper rates.

They are also being encouraged to check if they qualify for Government supports such as the Fuel Allowance or the Free Electricity Allowance.

Daragh Cassidy of Bonkers.ie said Electric Ireland's price increase announcement was "expected" and he was "surprised it didn't come a bit sooner".

"Last autumn, most of the major energy suppliers increased their electricity prices by between 10% and 15% due to sustained high wholesale electricity costs and higher network charges for maintaining the electricity grid.

"But Electric Ireland instead announced an electricity “price freeze” for the winter months, alongside a small cut in gas prices. So this increase effectively brings its electricity prices back into line with the rest of the market.

“So while today’s announcement will understandably worry households, it’s not necessarily the start of another widespread round of electricity price hikes across the market. Even after this increase, for example, Electric Ireland’s standard electricity rates will still be lower than most of the other suppliers in the market."

Cassidy said the picture for gas is slightly different.

“Wholesale gas prices have risen by around 40% to 50% in recent weeks following renewed conflict in the Middle East and this is likely to put upward pressure on gas prices across the wider market.

“Despite the rising prices, there is still strong competition among energy suppliers for new customers and many are offering significant introductory discounts to those who switch.

“I can’t stress enough how quick and easy it is to switch supplier. The entire process can be completed online in just a few minutes and customers don’t even need to contact their existing supplier before switching.

“I’d also encourage households to check what Government supports they may be entitled to, as these can make a real difference over the colder months.”