This is Pinergy’s third electricity price increase after it last raised its prices in April and June. Customers will now be paying a combined total of around €361 extra year per year from August 23rd.
It sure isn’t a great time to be a bill payer that’s for sure, what with a continued rise in the cost of gas and electricity.
At this moment in time a total of 10 energy suppliers have increased their prices at least once this year, with many having already implemented two price increases.
Here’s what today’s news means for customers...
What does the latest price increase from Pinergy mean?
Pinergy has announced it will be increasing the cost of its electricity by 11.4%, its third increase of 2021 so far.
Its latest increase is set to come into effect on August 23rd and will add around €188 to a customer’s annual electricity bill.
Combined with its previous price increases in April and June, Pinergy customers will now be paying a total of around €361 extra per year after the third increase comes into force.
Discussing its decision to raise prices again, Pinergy CEO, Enda Gunnell, said:
Regrettably, due to the continued and significant infrastructural supply issues and wholesale pricing outside our control, we will have to increase prices again to our customers. We have raised these issues on behalf of our customers with both Policy makers and regulators in recent weeks. Unfortunately, this cycle of price increases is likely to continue until real action is taken.
We had hoped the energy transition to net zero carbon would be smooth. Regrettably it seems that homes and businesses will have to bear the increased costs, at least in the short term.
He added by saying:
I would, however, like to reassure our customers that Pinergy will be doing its best to continue to offer value & data-led insights to help them to reduce energy waste. In the short term, we welcome the reduction in the PSO levy. However, it will not offset the increases being faced by electricity users across Ireland.
A spate of energy increases
The last supplier to announce a price hike was Bord Gáis Energy, which announced a 14% increase in the price of its gas and a 12.5% increase in the price of its electricity at the start of the month.
Energia, Flogas, Bord Gáis, and Iberdrola have all announced both spring and summer price increases this year, while both Pinergy and Panda Power have announced three increases so far in 2021.
Why are energy prices increasing?
There are many reasons for this but it can be summed up in a number of bullet points.
- Fossil fuels - in Ireland we still rely heavily on the burning of fossil fuels to create energy for homes around the country. Up to 50% of electricity here is generated by burning gas, while 10-15% is from burning coal and oil. This means we’re susceptible to the price of fossil fuels. When the price of fossil fuels goes up, which it has been doing in recent months, so too does the price of energy.
- Costs of the network - our energy bills are made up of different costs, one of which is the cost it takes to maintain both the electricity and gas networks. This includes elements such as pylons and electrical lines, as well as the pipe network for gas. These costs make up around 30% of energy customers' bills and have been increasing too.
- Renewable energy - in essence, renewable energy requires considerable investment at present in the national grid and these costs are being passed onto the consumer.
For a more detailed analysis of why energy prices are increasing see here or listen back to this recent radio interview where we discuss the reasons behind the increases.
But for now, one of the best ways to continually save money on your energy bills is by switching supplier and saving!
Compare energy prices on bonkers.ie
Have you looked into switching energy supplier?
Here at bonkers.ie, you can use our energy comparison service to compare the best deals across 14 energy suppliers nationwide.
If you’re out of contract, switching is worthwhile and could allow you to save over €500 annually on your energy bills.
For more information before you make the switch, consider taking a look at some of our helpful energy guides:
- Our frequently asked questions about switching energy supplier will help make it as easy as possible for you to switch.
- Familiarising yourself with these 10 important terms will make the switching experience less daunting.
- While price is an important factor, there are other aspects to consider when switching. Here’s a list of 7 important things to keep in mind when looking into switching.
If you don’t feel like switching at the moment or are still in contract, there are steps you can take to reduce your energy consumption and lower your bills. Check out these 15 ways to use less electricity and save money to learn more.
Even if you’re still in contract and would like to switch, you still can but there will likely be an early exit fee. You can learn more about energy cancellation fees here.