Pinergy becomes latest energy provider to increase rates

More people are facing increases to their electricity bills after provider Pinergy became the latest to announce an increase to its standard residential energy prices.

The company said the move follows sustained issues in the wholesale energy market and national grid, which are causing “unprecedented pricing pressures”.

The change, which will take effect from August 23rd, will result in a standard unit rate price increase of 3.5 cents. For a typical household, this will amount to an 11.4 per cent increase.

The increase will be equivalent to a €3.61 per week increase, including VAT, in the estimated annual bill, based on a domestic customer using typical consumption per annum on standard tariffs.

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The company’s move follows an announcement in recent weeks by Bord Gáis Energy that it will hike prices in the face of surging wholesale costs. Households face electricity bill increases of around €11 a month from August 8th.

The company will increase gas prices by 12.7 per cent, adding €8.36 to the average monthly bill, and boost electricity charges by 11.6 per cent, or €11.39 a month on average.

Similarly, ESB subsidiary Electric Ireland recently announced it was increasing its prices, adding an average of €8.20 a month to household electricity bills.

Oil, gas and coal prices have been rising on world markets this year as countries re-open following 2020 Covid lockdowns.

This is in turn driving up Irish wholesale electricity costs, which have almost trebled over the last 12 months from lows of €30 to €40 a mega watt hour – the unit in which power is sold – to more than €100.

SSE Airtricity, Flogas, Iberdrola and Energia, have all increased household charges this year.

IDA Ireland told regulators in recent days that warnings around electricity demand pushing supplies to their limit had sparked concern among multinationals in the Republic.

A review meant to gauge security of energy supplies in the Republic will not be completed until next year, according to Eamon Ryan, Minister for the Environment, Climate and Communications.

Fears are growing about energy security next winter as two electricity generators remain out of action while demand surges as data centres and other facilities seek extra power.

Pinergy chief executive Enda Gunnell said: "Regrettably, due to the continued and significant infrastructural supply issues and wholesale pricing outside our control, we will have to increase prices again to our customers.

“We have raised these issues on behalf of our customers with both policy makers and regulators in recent weeks. Unfortunately, this cycle of price increases is likely to continue until real action is taken.

“We had hoped the energy transition to net zero carbon would be smooth. Regrettably it seems that homes and businesses will have to bear the increased costs, at least in the short term.

“I would, however like to reassure our customers that Pinergy will be doing its best to continue to offer value and data-led insights to help them to reduce energy waste.

“In the short term, we welcome the reduction in the PSO levy. However, it will not offset the increases being faced by electricity users across Ireland.”