The latest price increase from Energia will see its residential gas and electricity prices rise by 18.5% and 15.7% respectively. It previously increased its prices in April and July of this year.
It’s uncertain when energy prices will begin to plateau, especially considering we’re in the middle of a continuing spike in prices.
Up until now most energy suppliers in Ireland have raised their prices at least once since the beginning of the year, with many having introduced three, if not four price hikes.
Customers of Energia will perhaps be dismayed to hear that the energy supplier has also announced yet another price increase, its third of the year so far.
So what are the details of the latest price hike?
Energia’s third price increase of 2021
Energia has announced its third price increase of the year, with the supplier’s electricity prices set to increase by 15.7%. Its gas prices are also set to increase by 18.5%.
The changes will come into effect from 18th October for Energia’s residential customer base of approximately 200,000.
The latest price increase from Energia will add approximately €223 to the average electricity customer's annual bill and €187 for gas customers.
Previous price increases
Earlier in the year Energia introduced its first price increase which came into effect on April 5th. Its second of the year was then announced for July 8th.
Taking all of Energia's price increases into account, electricity customers will now be paying around €450 more annually, while gas customers will be paying around €324 more per year.
Andy Meagher, Director ROI Customer Solutions at Energia spoke about its decision to increase its prices for a third time:
Driven by increasing wholesale electricity costs and global commodity prices, regrettably we have taken the decision to increase the price of our electricity and gas for residential customers.
We have worked to support our customers over the course of the pandemic and this decision was not taken lightly, but was unfortunately unavoidable due to global conditions. We will continue to review wholesale electricity and gas prices, to provide customers with the best possible value and service.
Why are energy prices increasing?
There’s no one, clear-cut answer for this but more a number of negative factors have all come together to create the perfect storm for energy customers, unfortunately.
As a nation we still rely heavily on fossil fuels to produce a lot of our energy and the rising cost of these has led to an upward trajectory for energy prices. For example the price of gas on wholesale markets has gone up by over 200% in recent months.
There has also been a lack of wind output which has reduced the supply of renewable energy.
All this to contend with, as well as the fact that a number of large electricity generation plants here have suffered from unplanned outages. The perfect storm.
Of course, things are always a little more complicated than they seem. You can read our article on why energy prices are increasing for plenty of more information.
If you’d prefer to engage your ears, you can also listen back to our insightful Head of Communications at bonkers.ie, Daragh Cassidy, who discussed everything you need to know about recent energy price increases on C103.
As September comes to an end the majority of energy customers will still be using far less energy than they would be at colder times of the year, with most of us still waiting on our final ‘summer’ bill.
As the warmer weather begins to disappear, and the colder winter weather approaches, many energy customers could be in for a severe shock when they get their first winter bill as a result of recent price increases.
The majority of energy suppliers have increased their prices in the warmer months so the effect of these increases won’t be fully seen until the temperatures start to drop and we need our heating to be turned on for longer periods of time.
The one thing customers can do however to offset any increase in their energy bills and make sure they’re paying the lowest possible rate this winter is by switching supplier.
Switch and save
Those willing to switch energy suppliers could save up to 40% off standard rates for the first 12 months. This means the average household could save up to €500 annually on their energy bills, which will help offset the inevitable price increases.
For more information before you make the switch, consider taking a look at some of our helpful energy articles:
- While price is undoubtedly an important factor, there are other aspects to consider when switching. Here’s a list of 7 important things to keep in mind when switching energy supplier.
- Some of the terminology associated with switching can be confusing. Familiarise yourself with these 10 common terms that you might encounter so that you can switch with ease.
- You can take a look at the most common questions we get asked about the energy switching process here.
It’s also important to remember that if you’re still in contract, you could be subject to an early exit fee by your current supplier if you decide to switch. Instead of switching supplier, you could try to reduce how much electricity you consume with these top tips to save on your energy bills. You can also listen to our recent interview on KFM to learn about how to consume less energy and save.
Get in touch
Are you an Energia customer? Were you expecting a third price increase? We’d love to hear from you!