The move will affect some 170,000 electricity customers, while the firm’s 60,000 gas customers have been spared, for now.
PrepayPower is the latest energy provider to announce an increase in its prices ahead of the winter, with a 9.9% increase in the unit price of its electricity from December 1st.
However, its rates for gas will remain unchanged. As will its standing charges.
This is the fourth electricity price increase by PrepayPower this year. The supplier only last hiked its prices on October 1st, when it upped the unit price its electricity by 22% and its gas by 35%.
Latest price increase
This newest price hike is likely to be a major worry for Prepay’s 170,000 electricity customers, who are already dealing with rampant inflation, rising interest rates and soaring bills across the board.
The average cost of a customer's electricity bill is likely to rise by €203 a year, which is on top of the last price increase that just came into force at the start of the month and which added around €340 to customer's electricity bills.
A company spokesperson said:
“While we are pleased to be able to hold gas prices at current levels as a result of our extensive hedging operations, unfortunately, even though there is some volatility on spot prices at present, the fact remains that longer-term wholesale electricity and gas prices are four times their historic norms. That has left us with no option but to increase prices for our electricity customers.”
However, the company said that it expects this to be its final price increase of the year.
On October 2nd, Taoiseach Michéal Martin confirmed that people on pay-as-you-go meters would not be disconnected this winter, amidst worry that this segment of the population would be left behind with the Government’s plans for a disconnection moratorium ahead of the winter.
Although pay-as-you-go energy can be more convenient, and help you budget or cut back energy use more easily, it can work out as more expensive in the long run as you'll also be charged a prepay meter charge on top of the annual standing charge.
Having said that, even after today's price hike, PrepayPower’s average bills remain among the lowest in the market. For now at least.
You can read more about the pros and cons of prepay electricity here.
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Let’s hear from you
What do you think about the latest price increase? Are you a pay-as-you-go energy customer? Are you worried about the latest price hike?
Let us know in the comments below.