Energia to bring in 'hefty increase' to electricity prices from next month

Eva Osborne

Energia will increase its home electricity prices by up to 12.1 per cent from October 9th.

Customers will see a 10.9 per cent rise in the average annual bill, which will equate to €3.94 per week.

Dual Fuel customers will see a six per cent increase, while annual bills for Smart Meter Electricity plans will go up by around 12.1 per cent.

Smart Meter Dual Fuel plan customers will pay an extra €3.71 per week, while gas customers will not be affected.

Energia has cited increased network charges or "grid fees" as the main reason for the hike. The company said it worked to minimise the impact on customers, but the price changes are unavoidable.

Daragh Cassidy of Bonkers.ie said the price increase is "hefty", but not unexpected.

"Around 30 per cent of the price we pay for our electricity and gas goes to Eirgrid and ESB Networks, and Gas Networks Ireland for the upkeep of the electricity and gas networks respectively," he said.

"Households don’t see these charges on their bills as they’re incorporated into the unit rate as well as the standing charge that we all pay.

"But these costs have been increasing over the past few years.

"For example last year the energy regulator, the CRU, approved a hike in grid fees for the electricity network that worked out at just over €100 a year per household. And last month it approved another hike of just under €30. And more hikes are coming next year.

"So some of these increases are now being passed on to consumers."

Cassidy said all the other suppliers in the market are faced with the same situation, so many are likely to follow suit by the end of autumn.

Unfortunately the high prices we're now paying for our energy look like the new normal.

"However there are still good deals available to those who switch with discounts of up to 30 per cent or more available for an entire year. So anyone worried about high energy costs should absolutely still look at switching.

"As we move into the colder autumn and winter months, and with record numbers in arrears, it's never been more important for households to be on the cheapest energy deal possible."