Over 1.2 million electricity and gas customers will be affected by Electric Ireland’s latest price increase, its second of 2022 so far. Ireland’s largest energy supplier has cited an increase in the wholesale cost of gas as the main reason for its latest price hikes.
Electric Ireland has announced its second price increase of the year, coming on the same day that Eurostat said inflation in Ireland has hit 9.6%.
The energy supplier’s electricity unit rate will increase by 11.35% while its gas unit rate will rise by 31.9%. Its standing charge for electricity and gas will also increase by the same amounts.
The changes will come into effect for more than 1 million customers from August 1st 2022.
Here are the details in full...
Electric Ireland price increase
Electric Ireland’s electricity increase of 11.35% as well as its increase to its standing charge will add around €165 a year to customers' bills.
At the same time, gas customers will be paying around €312 more a year.
Electric Ireland only last increased its prices in May when it upped the unit price of its electricity by 22% and its gas by 25%. That move added around €298 a year to the average customer's electricity bill and €220 to their gas bill.
Electric Ireland has cited the ‘ongoing disruption in the geopolitical landscape’ as reason for its second increase of 2022.
Discussing its latest price hike, Suzanne Ward, Interim Executive Director, Electric Ireland said:
We understand this price increase is unwelcome news for our customers. We delayed this increase as long as we could, but unfortunately, the situation in Eastern Europe and a reduction in the reliability of gas flows has resulted in sustained higher energy costs throughout Europe. We have seen a very substantial increase in the cost of wholesale gas, which in turn, impacts both our gas and electricity prices.
We are determined to continue offering the best value we can for customers by providing one of the lowest standard electricity rates in the market. This rate is automatically available to all of our loyal customers – not just new customers. We also have flexible payment plans for those who are struggling to pay their energy bills.
In addition, based on feedback that last year’s Electric Ireland Hardship Fund made a real difference in customers’ lives, we have pledged €3 million to a new Hardship Fund which will operate from Autumn to help customers experiencing payment difficulties at the coldest time of the year.
Previous price announcements
This is Electric Ireland’s second price increase of 2022 so far, but its fourth in the space of 12 months.
Here’s a look at its last four price increases and how they have impacted customer’s pockets.
Fourteen energy suppliers have made price increases since the beginning of 2022, with Electric Ireland now joining Prepay Power in upping its prices for a second time.
It’s not only consumers feeling the pinch of the crisis however, with energy supplier Iberdrola announcing it will be leaving the Irish market soon - the second supplier to exit the Irish market in recent months after Bright.
Electric Ireland has also announced a new €3 million Hardship Fund opening this autumn to help customers who have difficulty paying their bills.
The fund will operate throughout the winter months and into next year to ensure customers who need assistance in paying bills are supported. Access criteria for the new fund will be announced over the summer.
For more information on supports available to those struggling to pay their energy bills, read our energy guide here.
Today’s news had been expected given the skyrocketing cost of gas on wholesale markets and the impact from the ongoing war in Ukraine.
Last year there were over 35 price hike announcements from Irish energy suppliers and the trend has continued into this year with all the major suppliers like Bord Gáis Energy, Energia, and PrePayPower announcing huge price hikes.
Commenting on the news, Daragh Cassidy, Head of Communications at bonkers.ie said:
Today’s news was expected unfortunately. And given Electric Ireland's size, it will be felt badly by many households nationwide. We’re heading into next winter with gas and electricity prices at absolutely astronomical levels. And it might even get worse.
To say these are unprecedented times for the energy sector is an understatement. More price hikes from all the other suppliers are likely to follow and more price hikes from Electric Ireland later in the year can’t be ruled out.
Since October 2020, when prices began to rise, some suppliers have more than doubled their energy prices. We’re in a crisis.
Despite these increases, Electric Ireland’s prices are still among the most competitive - if you could even use that word. However its decision to significantly raise the standing charge again is disappointing. It means households are now being charged well over €300 a year for their electricity before they’ve even turned on a single appliance.
Save by switching suppliers
If you’re looking to offset the latest price increases from Electric Ireland, the quickest and easiest way to save money on your energy bills is to compare prices and switch to a cheaper supplier.
Despite the rising prices, there is still competition among all 12 energy suppliers in Ireland for new customers right now and many are offering big discounts of over 40% for a year to those who switch.
The average energy customer who is out of contract and switches today on bonkers.ie could save €771 on the cost of their annual bill.
On bonkers.ie we make switching your supplier quick and easy, and have been for over 10 years! It can all be done online in the space of a few minutes.
Check out our energy comparison tool today and see how much you could save!
Get in touch
What do you think of Electric Ireland’s latest price increase? Is it really necessary? Let us know your thoughts in the comments below.