Eir to hit thousands of customers with raft of new price increases

The higher charges will apply to 500,000 customers from August and come after the telecoms firm put up its prices for some of its consumers just last September.

Now it is increasing its landline, television, broadband and mobile charges by €5 a month for residential customers.

This rise, which includes VAT, will mean customers will pay an extra €60 a year, adding more to the cost of living.

Small businesses have been told their landline charges will rise by €5 a month excluding VAT.

From April next year, customers are being told, prices will automatically rise by the official inflation rate plus 3pc. Some have claimed this move is anti-competitive.

Eir is the principal provider of fixed-line and mobile telecoms services in Ireland with around two million customers.

As households grapple with a savage cost-of-living crisis, the provider is also introducing a range of new charges.

From next January there will be a monthly charge of €4.87, excluding VAT, for a paper bill. The VAT rate on telecoms bills is 23pc.

There will also be a charge of €4.87 for paying via a call centre agent, and a late or missed payment fee of €15. Both are before VAT is applied.

From next April, Eir said it will increase the monthly cost of landline and broadband plans by the rate of inflation in January each year plus 3pc.

These price increases will apply on the full monthly price plan before discounts.

The consumer price index inflation measure is currently 7pc, which would mean price rise of 10pc if prices keep rising at that rate.

This is a similar move to Vodafone and Three Mobile, which have said they plan ongoing rises.

Vodafone Ireland has introduced a minimal annual price increase of at least 3pc for new mobile bill pay customers and bill pay clients who upgrade or renew their contract.

Three Ireland is increasing the monthly charge on its bill pay price plans annually by 4.5pc.

Questions have been raised about whether or not automatic inflation-plus price rises are anti-competitive as they could be seen as a form of price signalling.

Eir justified the price rises because of continued investment in its network and rising costs.

It said it is the largest telecommunications investor in the country, investing €1bn into the upgrade of the country’s communication technology.

“Current customers will see a €5 increase implemented to their bills per month from August,” it said.

Just last September Eir increased voice and broadband prices by €6 a month. This added €72 a year to the average bill.