The cost of Pinergy’s latest price hike - Drivetime
Pinergy has announced that its latest price hike will come into effect from September 5th, impacting customers nationwide. Daragh Cassidy, Head of Communications at bonkers.ie, joined the Drivetime team to discuss this breaking news, and what it will mean for customers.
What does Pinergy’s latest price increase mean for customers?
It is bad news for Pinergy customers as the electricity supplier has announced that it is increasing:
- Its electricity prices by 18%
- Its prepay meter charge by 24%
- Its daily standing charge by 30%
Pinergy currently has around 27,000 customers, the majority of which are signed up to its prepaid electricity, rather than its bill pay service. All in all, these customers will now be paying an extra €375 a year for their electricity.
Has Pinergy increased its prices before?
Yes, it has.
Although this price hike is the first one from Pinergy this year, the supplier had 5 price hike announcements during 2021. This means customers are now paying an extra €1,150 more for their electricity due to these combined increases.
How do Pinergy’s prices compare to other suppliers?
Last year there were 35 price hike announcements during the year, and so far in 2022, we have had 15 announcements.
There is no question that this trend will continue throughout the year.
In comparison to other suppliers, Pinergy’s prices are at the more expensive end of the energy suppliers. Like some other small suppliers such as Panda Power and Flogas; Pinergy only supplies electricity, it doesn’t generate it so it can’t make money from that.
Whereas Bord Gáis Energy, Electric Ireland, and SSE Airtricity generate electricity along with having their retail businesses. This means they do not have to increase their prices as much as small companies, such as Pinergy.
The average annual electricity bill for a Pinergy customer is around €2,400, compared to Electric Ireland customers who will pay €1,700.
This is quite a big difference, but Pinergy is not making a huge amount of money from this. To be honest, all these suppliers are struggling.
Why are suppliers leaving the market?
Now suppliers would not be leaving the market if there were big profits to be made.
Iberdrola, Bright Energy, and Glowpower have all left the Irish market this year due to the difficulties they faced doing business here.
You must understand that the cost of generating electricity in Ireland is very high. According to Eurostat, electricity prices are 50% higher than the EU average before you take Government taxation into account.
This is huge! There is no other service in Ireland where the disparity between Ireland’s costs and the EU average is so large. This indicates to me that there are big inefficiencies and issues with the generation of electricity here that the CRU and Government have to get to the bottom of.
Cut the cost of your energy bills
If you have fallen victim to Pinergy’s latest price hike and are out of contract, you should consider switching suppliers.
On bonkers.ie, you can compare the different deals on the market from all of Ireland’s leading electricity and gas suppliers in seconds.