PrepayPower is the second energy supplier to raise the price of its electricity in less than a week.
It’s the last thing consumers wanted to see, yet another energy price increase, this time from Pay-As-You-Go electricity supplier PrepayPower.
PrepayPower is the latest energy supplier to announce a price increase to its electricity, with an increase of 2.9% due to come into effect for customers from Sunday, October 4th.
This latest price increase from an electricity supplier follows in the footsteps of Electric Ireland, who on September 1st announced it would be increasing its electricity prices come the start of October also.
With the floodgates now open for other suppliers to increase their prices, it’s only a matter of time before we see increases across the board.
We take a look at the latest increase from Prepay in more detail below...
A closer look at the price increase
PrepayPower will be increasing its electricity price for customers by 2.9% from October 4th, which means an additional cost of just over €0.09 for the average energy customer per day, or an extra €33 per year.
The pre-pay electricity provider only announced an electricity price reduction of 2.5% in April, which is set to be reversed with today’s announcement.
PrepayPower is citing an increase in ‘network related costs which are outside of the control of the company’ as the reason for the sudden price increase.
However, PrepayPower has confirmed that it is not altering the price of its gas this winter. The energy supplier only recently announced an 11.5% decrease in April, which will remain for the winter months.
The costs cited by both PrepayPower and Electric Ireland are impacting all suppliers in the electricity market and it’s only a matter of time before we see more follow suit in the coming days and weeks.
A PrepayPower spokesperson said:
“In April we reduced both electricity and gas prices. At that time we passed on the benefit of reduced rates from our forward purchasing of electricity and gas for delivery this winter. This resulted in an 11.5% reduction for gas customers and a 2.5% reduction on electricity, saving an average customer approximately €100 per year.
Unfortunately, the increase in electricity prices from next month reverses that April reduction. It arises from network cost pressures which are impacting all the suppliers of electricity in the market and which are outside of our control. We remind our customers that through our app, there are a number of opportunities to manage energy consumption which can lower energy consumption and costs.”
Price hikes impacting consumers
The second price increase in only three days is a sure, yet unfortunate sign that there could very well be many more to come for electricity customers across the country, and coming into the colder winter months.
The increase in network operator costs impacting electricity suppliers, cited by both companies who have upped their prices in recent days, will likely see more suppliers up their prices in the coming days and weeks also.
The price increases come at a rather inopportune time for customers, to put it lightly, with many people’s pockets still negatively impacted by the all-too-apparent financial effects of the virus.
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