Electricity price rise on the way
State-owned ESB’s 1.3 million household customers face a near 6 per cent increase in the cost of electricity from next month in the latest round of energy price hikes.
Its subsidiary, Electric Ireland, which supplies electricity and natural gas to domestic customers, today announced it is increasing its electricity charges by 5.9 per cent from October. The move will add around €50 a year to the average household electricity bill.
At the same time, the company plans to increase natural gas supply charges to householders by 8.5 per cent, in line with the price rise for the ESB’s rival, Bord Gais, that the Commission for Energy Regulation approved this week.
It emerged earlier this week that electricity prices were due to rise following a decision by the regulator to increase charges for use of the Republic’s electricity networks - the national grid and distribution system - which transmit power from generating plants to customers.
The regulator estimated the network charges would add up to 3.5 per cent to electricity prices.
Electric Ireland said that along with the network charges, the public service obligation, charged to all bills, is also increasing.
The network and public service charge combined account for two-thirds of the increase, Electric Ireland said. It blamed the euro’s weakness against sterling for the remaining third. Around 60 per cent of the electricity consumed in the Republic is generated by burning natural gas. Most of our natural gas is imported from Britain and is paid for in sterling.
Electric Ireland’s general manager, Liam Molloy, said the company regrets having to increase its prices and is acutely aware of the hardship that many of its customers face.