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Householders to be hit with a €90 rise in electricity bills

 

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Energy bills are set to rise

Energy bills are set to rise

Energy bills are set to rise

Electricity bills are to rise by almost €90 a year from tomorrow 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.

Both 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.

Forced

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.

The country's biggest electricity supplier, Electric Ireland, 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.

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

Flogas announced it is cutting the cost of natural gas for residential gas customers by 10pc from November 1. The price cut will reduce the average standard gas bill by €78 a year, it said.

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

Daragh Cassidy, head of communications at 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.

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

Lower wholesale energy prices meant those generating electricity from renewable sources need higher levels of financial supports to be viable.