Latest shock | 

Energia becomes sixth energy supplier to hike its prices in the past fortnight

The firm is pushing up the cost of its electricity, gas and dual fuel to householders from October 7 by double-digit amounts


Charlie WestonSunday World

Energia has become the sixth energy supplier in the past fortnight to hike its prices.

The firm is pushing up the cost of its electricity, gas and dual fuel to householders from October 7 by double-digit amounts as the crippling cost-of-living crisis bites harder.

Electricity prices are rising by 29pc this time, in a move that will cost a typical household €511 in additional costs over a year.

Gas prices are going up by 39pc, a move that will add €520 to the cost of using that fuel over a year.

Dual-fuel customers are facing a 33pc rise, adding €1,030 to the annual cost of both fuels.

There will be no increase to night rates for those customers on smart tariffs, and there is no increase in the standing charge.

This is Energia’s second price rise this year, and last year it had three increases.

The group, which is one of the big four suppliers in the market, has around 220,000 household customers.

When all five increases are taken into account households face paying more than €1,200 more for their electricity, and over €1,000 more for their gas over a year.

Daragh Cassidy of price comparison site said this price-rise announcement was expected given recent price hike announcements from Electric Ireland, SSE Airtricity, Bord Gais Energy and others.

“This brings to an end this cycle of rate hike announcements. The question is when the next one begins.

“Unfortunately, it’s almost certain all suppliers will raise prices again in a few months unless there is some type of intervention in the energy markets. While it is hard to believe, only a small part of the increase in wholesale price of gas has been passed on to consumers so far.”

Managing director of customer solutions at Energia Gary Ryan said wholesale gas costs have risen by 650pc.

Mr Ryan said in recent weeks wholesale market conditions have deteriorated further, resulting in a markedly higher cost for the purchase of gas to supply customers in the year ahead and consequently higher electricity costs.

"Suppliers are unable to absorb increases of this scale and unfortunately it has an impact on customer tariffs.”

He said the company will continue to support its customers.

Mr Ryan said the supplier recognises the difficulty these increases will present for many households.

“We urge any customers experiencing financial difficulties to contact us and we commit to working on an individual and flexible basis.”

Earlier this year it emerged that Energia saw its profit after tax surge 50pc to €28.8m in its last financial year.

The unit of Energia that supplies energy to residential and business customers also paid a €30m dividend to its immediate parent firm, accounts for the unit indicate.

The accounts cover the 12 months to the end of March last year. Revenue at the division increased to €948.4m in the period, from €928m in the previous financial year.

The group is owned by US private equity group I Squared Capital and owns the massive Huntstown gas-fired power plant in Dublin.

So far there have been increases of between 20pc and 40pc from SSE Airtricity, Electric Ireland, PrePayPower, Community Power and Bord Gáis Energy during the current wave of price hikes.

Since the start of 2021 there have around to 60 separate price-increase announcements.

These have meant the annual cost of supplying a typical home with electricity has more than doubled to €2,000.

There has been a similar rise in gas costs, with home-heating oil prices also doubling to around €1,350 for 1,000 litres of the fuel.

Today's Headlines

More Irish News

Download the Sunday World app

Now download the free app for all the latest Sunday World News, Crime, Irish Showbiz and Sport. Available on Apple and Android devices