Energia is to increase home energy prices by 15 per cent next month due to a sustained period of elevated global energy market prices.
The increase comes as the cost of living soars and pressures on the price and availability of food and energy are being exacerbated by Russia’s invasion of Ukraine.
The changes will come into effect on April 15th. For the average customer, the hike will mean an increase of €4.75 per week, or €247 per year.
Energia gas customer bills will increase 15 per cent or an average of €3.45 per week. The increase for dual fuel customers will equate to an average of €8.20 per week, or €426 per year.
Energia director of customer solutions Andy Meagher said the company had done its best to absorb costs but pointed out that wholesale cost of gas and electricity had “risen substantially” over recent months.
“We are very conscious that these global issues impact our customers locally, and we remain committed to delivering the very best value and service,” he said.
“As such, we have done our best to absorb the increases in wholesale and commodity costs but these price changes are unavoidable.
“Our customer care team is available to support those customers experiencing difficulties, and we also partner with the Money Advice and Budgeting Service (MABS) to provide advice and support.
“Overall, we have limited, where possible, the full cost increase to customers, and we will continue to review the market and to work with our customers to help them manage bills where required.”
Market volatility
It is the second price rise announcement from an energy supplier this year following Bord Gáis Energy (BGE) moving in recent weeks, and more suppliers are set to follow.
BGE’s average electricity bill and gas bill is to increase 27 per cent and 39 per cent respectively, also from April 15th.
Those increases will add about €350 a year to the average household’s annual gas bill and €340 to the average annual electricity bill.
BGE, which raised electricity prices three times last year and gas prices twice, also pointed to high global wholesale energy costs and market volatility that is “expected to continue for some time”.
It said its winter price pledge, which protected customers over the colder winter period, “is ending”. Ministers have been told that high wholesale energy prices are expected to remain until 2023, driving household bills high next winter.
The surging wholesale prices drove independent power supplier Bright Energy out of business in January, making it one of electricity inflation's first casualties.
Bright told regulators at the time that it would cease trading, automatically shifting 1,500 remaining electricity customers to ESB subsidiary Electric Ireland.
