Pinergy electricity increase and the future of energy prices - KFM
The latest price change will come into effect on September 5th.
Our Head of Communications, Daragh Cassidy discusses the latest change on KFM, the reasons behind why electricity prices fluctuated so wildly in the last year, the future of energy prices, and how consumers can save on the amount of energy they consume.
Was the increase a surprise?
Not at all, unfortunately. We’re back in a period of rising prices again and we are still in the middle of an energy crisis.
Pinergy has held off raising prices this year until now, but the price hike is pretty significant. The supplier raised its prices in 2021 five times.
Pinergy is putting up the unit price of electricity by 18%, but the standing charge by 30%, and the pre-paid meter charge by 24%.
This means that the average customer is looking at paying approximately €375 a year extra for their electricity.
When you take this into account along with the other 5 increases from last year, the average customer is looking at paying €1,100 more for their electricity.
Why are they increasing prices again?
Pinergy is a small enough supplier, so they may be struggling more than other suppliers.
The price of gas has risen to astronomical levels. The price of gas on wholesale markets is anywhere from 10-12 times what it was 18 months ago. And because we use gas to generate so much of our electricity, that then has a big impact on the price of electricity.
Smaller suppliers, like Pinergy, likely feel they have no choice but to pass on the increase to customers. It’s the same if you go into the shop and see that bread has increased in price recently.
In general, how much have energy bills increased since the energy crisis began?
It’s pretty hefty. The average electricity bill is going up by €800-900, whereas the average gas bill is probably going by around €700-800.
With some suppliers, increases will be a lot higher. If you’re a top-rate taxpayer, you’ll need to be finding €3,000 just to pay for the increase.
There are likely more price hikes on the way, I wouldn’t be surprised if we saw prices go up again by 10-15%.
What does winter hold?
It’s looking expensive and bleak. There’s a lot of talk about rationing, which would cause bigger businesses and industries to cut back on their energy use, but that’s not to say it won’t impact us.
For example, if a manufacturing plant has to cut back on its output, that might affect us indirectly down the line if we try to buy those goods and services.
In Ireland, we don’t have direct exposure to Russian gas. Most of our gas comes from our own reserves and via the UK, which in turn gets it from Norway and its own reserves.
If Russia turns off gas taps to the rest of Europe - Germany in particular - and countries go looking for gas elsewhere, like in Norway, that could put pressure on our gas supply.
We just don’t know what is going to happen.
How can you offset the price increases?
The first thing you can do is switch to a cheaper supplier. With a discounted rate, the sting will be taken out of rising prices.
You can also look at ways that you yourself can reduce energy use in your home which can help you save money on your bills and lessen the pressure on the grid.
There are tips on the SEAI website, and also right here on bonkers.ie. Take a look at this article to learn how to use less electricity and save money, and learn how to heat your home for less in this article.
Check and see if there are any social welfare payments you might be entitled to. Some suppliers also have hardship funds available if you’re struggling as well.
Switch and save with bonkers.ie
If you’re a Pinergy customer and want to save money on your energy bills use our free energy price comparison tool to compare deals from Ireland's main energy suppliers against your current plan.
Check out our Quickstart Guide to learn how about the comparison and switching process.
Get in touch
If you have any questions or queries about Pinergy’s increase, get in touch with us.