Electric Ireland announces 3.4% price hike on electricity

© Provided by Extra.ie

Electric Ireland has announced it is increasing electricity prices by 3.4% from October, citing ‘recent costs impacting the broader electricity system and market’.

Ireland’s largest energy provider with 1.2m residential customers nationwide said the average customer would pay an additional €2.88 per month — nearly €35 per year.

The price increase for electricity increases cancels out the savings made by customers when prices were reduced by 2.5% in April.

© Provided by Extra.ie Electric Ireland is raising prices by 3.4%. Pic: Getty Images

Electric Ireland has decided to freeze gas prices though, ensuring the 11.5% price cut made in April will remain in effect during the winter months.

‘Unfortunately, due to other electricity system and market costs outside of our control, we now have to increase our electricity prices from October 1,’ Electric Ireland executive director Marguerite Sayers said.

‘This will mean an increase of €2.88 per month on the average residential electricity bill.

© Provided by Extra.ie Gas prices remain static though following an 11.5% cut in April.

Ms Sayers maintained that Electric Ireland, the retail arm of ESB, has one of the lowest standard rates in the market for electricity and gas, although Ireland is among the most expensive countries for electricity in the EU.

Speaking to Extra.ie, Darragh Cassidy of price comparison site Bonkers.ie called the announcement ‘surprising’ and ‘disappointing’ while speculating that Electric Ireland may be passing on Brexit-related costs to consumers.

‘Even though they’re putting the blame on various other factors, with COVID the price of energy on international markets has gone down,’ he said.

© Provided by Extra.ie Ireland is the fourth most expensive EU country for gas and electricity. Pic: Getty Images

‘There’s really no pressure [to increase] energy prices at the moment,’ he added, quoting Eurostat figures that show energy prices are down 80% year-on-year throughout the EU.

Customers may also see their bills increase with the expected increase in the public service obligation (PSO) levy next year.

The levy is currently €38.68 per year inclusive of VAT, but the Commission for the Regulation of Utilities (CRU) has provisionally approved a 70-80% increase.