Business Personal Finance

Tuesday 21 August 2018

Householders to be hit with higher charges for electricity and gas

Wholesale gas and electricity prices have begun to rise. Stock Photo
Wholesale gas and electricity prices have begun to rise. Stock Photo
Charlie Weston

Charlie Weston

Householders are to be hit with higher charges for electricity and gas after both SSE Airtricity and Bord Gáis said they were raising their prices.

Customers who get electricity from SSE Airtricity and are to be hit with a price rise from the start of November.

The move will see bills rise by almost €50 a year.

The company said the 5.6pc rise was due to the recently announced increases in regulated networks charges combined with an extended period of rising wholesale energy costs.

And Bord Gáis Energy said its electricity prices are going up by 5.9pc and gas bills by 3.4pc from November 1.

This will mean the average electricity bill will rise by €57 a year, with typical gas bills rising by €25 a year.

Wholesale gas and electricity prices have begun to rise.

However, consumer groups said energy companies only cut their prices by tiny amounts when wholesale energy costs were at record lows over the last few years.

SSE Airtricity said the price increase was the first in four years and means a typical household customer will pay less than 90c more per week for their electricity.

The increase will not be applied to SSE Airtricity’s customers using pay-as-you-go meters to manage outstanding debt repayments.

Director of home energy at SSE Airtricity David Manning said the decision to raise prices was not taken lightly and was driven by rising costs outside of our control.

“These include recently announced increases to regulated charges for using the electricity networks, which affect all suppliers, as well as prolonged increases in the cost of wholesale energy on global markets.”

Bord Gáis Energy managing director Dave Kirwan blamed continued increases in wholesale energy costs this winter, as well as the recent increases to the costs of distributing energy on the network, have forced us to raise our prices.”

The latest rise comes as the levy on all electricity bills is due to rise on Sunday. The so-called public service obligation (PSO) levy rises by €25 to €104.50 a year on every household’s bill.

The latest price hike comes as the largest player in the market, ESB, reported an operating profit of €297m in the six months to June.

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