This is the third price increase announced by Iberdrola in 2021, with two other price hikes having already been implemented, the first on April 24th and the second on July 26th.
We can’t say it comes as much of a surprise to be quite honest, but yet another (yes, another) energy supplier has announced an increase...
This time it's the turn of Iberdrola, the energy supplier’s third price increase of the year so far!
And it’s not the only one; Pinergy, Flogas, and Panda Power have all increased their residential energy prices three times so far this year too, with a lot of suppliers having done so twice.
So what’s the news on the latest energy price increase? Here’s what customers of Iberdrola need to know!
Iberdrola’s third price increase in 2021
The Spanish-owned supplier has announced it will be increasing its residential electricity prices by 17.5%, while gas customers will face an 18% increase from October 1st.
The latest price hike from Iberdrola will see €217 added to the average customer’s annual household electricity bill, while a further €154 will be tacked onto the average gas customer’s annual bill.
However, when all of this year's price increases are taken together, the average Iberdrola customer will now be paying a whopping €420 more per year for their electricity and €257 more annually for their gas.
Those customers who are on discounted tariffs with the supplier will continue to receive their current level of discount, however, they won’t be protected from the price increase unless they switch.
Iberdrola has advised it will be in contact with all customers directly to advise them of the forthcoming changes on October 1st.
Speaking about its decision to increase prices for a third time this year, Sean O’Loughlin, Head of Iberdrola Ireland said:
While we always try to keep prices as low as possible, we’ve seen rocketing wholesale energy prices in recent months. As a result, we need to amend our prices to reflect these rising costs.
We’re in the process of contacting our customers to advise them of these price changes and – as always – will continue to do what we can to support them.
When will it end?
To say we’re back in a period of rising energy prices would be an understatement.
This is Iberdrola’s third price increase this year, after it first raised prices in April, and then again in July.
There seems to be a crisis in the energy market at present as rapidly increasing prices in the wholesale cost of energy are being passed on to consumers, coupled with a lack of electricity output due to some electricity power plants being down.
However price increases of this magnitude and frequency are unsustainable. And coupled with recent concerns about potential power outages and pressure demands on the grid, questions need to be asked about how the market is being managed.
That being said, it’s likely that we’re over the worst of the price hikes, but on the other hand, we're unlikely to see prices falling much within the next year or so. However they should stabilise when the Whitegate and Huntstown gas-fired power plants in Cork and Dublin, which have been closed for maintenance reasons, come back into action over the coming weeks.
For more information on why exactly energy prices have been increasing, check out this article we wrote on bonkers.ie or listen back to this recent radio interview we did.
And while it’s unlikely that those suppliers who have already raised their prices three times will announce a fourth price rise, those who have held off and only increased their prices once or twice this year will probably have to increase them again in the coming weeks to catch up with the market.
So, if you’re an Electric Ireland or Bord Gáis Energy customer you can probably expect another increase in the coming weeks and months unfortunately.
However, those concerned about rising energy prices should look at switching supplier to save money.
Switch and save
Despite the rising prices, there is still huge competition among the 14 energy suppliers in Ireland for new customers right now and they’re all offering huge discounts to those who switch.
For example, the average switcher could save around €500 a year just by changing supplier, which would more than offset the price hikes.
We can’t overestimate how quick and easy it is to switch and it can all be done online in the space of a few minutes on bonkers.ie. Use our energy comparison tool to compare and switch to the best deals on the market right now.
You only need a few things on hand to make the switch:
- A GPRN number if switching gas and an MPRN number if switching electricity
- A recent meter reading
- A good estimate of how much energy you use
- Some personal details
Read our helpful guide on what you need to switch suppliers for further information.
If you’re still in contract and don’t feel like paying an early exit fee, there are steps you can take to reduce your energy consumption instead. Check out these 15 ways to use less electricity and save money.
Get in touch
Are you an Iberdrola customer? Were you expecting a third price increase this year? Let us know in the comments below.
If you have any questions about Iberdrola’s price increase or about switching energy supplier, you can get in touch with us on Facebook, Twitter or Instagram.