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Households to be hit by rise in electricity prices and a levy increase

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Daragh Cassidy of Bonkers.ie

Daragh Cassidy of Bonkers.ie

Daragh Cassidy of Bonkers.ie

Electricity bills are to rise by almost €90 a year from today for more than one million households.

This is because consumers are set to be hit by a double whammy of price increases from the largest supplier and a rise on the levy on all household electricity bills on the same day.

Electric Ireland and Prepaypower are raising their prices, while the public service obligation (PSO) levy that supports the generation of electricity from wind power is set to shoot up by 130pc.

The combination will see almost €90 a year added to most consumers' bills.

Higher costs come at a time when winter is closing in, while thousands of people who are forced to work from home due to the pandemic will have no choice but to use more electricity.

Electric Ireland, the country's biggest electricity supplier with more than one million customers, is pushing up the cost of electricity by 3.4pc from October 1.

This will add around €35 a year to the average annual bill.

Customers of Prepaypower will be faced with a price rise of 2.9pc which is due to come into effect from Sunday.

Both suppliers cited increased electricity network operating costs as the main reason for the price hikes.

After the announcement of the two price rises it was feared that it would prompt a cycle of increases from their rivals.

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But Bord Gáis Energy stole a march on its rivals by announcing a price increase freeze for the winter.

And Flogas has just announced it is cutting the cost of natural gas for residential customers by 10pc from November 1, reducing the average standard gas bill by €78 a year, it said.

And it said it is also freezing its residential electricity prices until at least next March.

Loyalty

Daragh Cassidy of price comparison site Bonkers.ie said the PSO levy for last year was €38.68 a year, including Vat, but will rise to €88.80 (including Vat) for the 2020-21 period.

He said businesses in this country seldom reward loyalty, and those who want to be on the best deal have to shop around regularly.

The Commission for Regulation of Utilities sets the levy, which is imposed on all domestic electricity customers. The 130pc rise will mean it is the second highest it has been since its introduction in 2010.

Lower wholesale energy prices meant those generating electricity from renewables such as wind need higher levels of financial supports to be viable.


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