AIRTRICITY CUSTOMERS are to be hit with gas price increases of more than 20 per cent and electricity price hikes of more than 12 per cent starting as early as next month.
Airtricity, which has 17 per cent of the domestic gas market and 15 per cent of the electricity market, blamed “significant increase in wholesale energy costs” on the planned price increases.
The average domestic gas bill is €720 a year and an increase of 22 per cent will push bills up by just under €160 annually. An electricity price increase of 12 per cent will add about €144 on to consumers’ household bills.
Responding to the announcement, the Society of St Vincent de Paul urged the Government to publish its long-awaited energy affordability strategy aimed at reducing fuel poverty
The charity also called on the Commission for Energy Regulation to ensure there were enough pre-payment meters to help people budget for energy costs.
Airtricity accepted that the price increases would place many customers in more difficulty, but pointed to a range of budgeting options it had in place to help people manage their bills.
It said the events such as the earthquake and tsunami in Japan, the political upheaval in the Middle East and “longer-term trends”, such as the fast-increasing energy needs of the Asian economies, had all contributed to the rise in wholesale energy prices. As a result, winter wholesale gas prices have increased by 30 per cent year-on-year.
The company said that effective from September 1st, the standard price on an electricity unit and its standing charges would go up by 12.3 per cent. A month later its gas unit rates will increase by 21.2 per cent. Its gas standing charge will remain unchanged.
“In these difficult times Airtricity very much regrets the need to increase energy prices,” the company’s chief executive Kevin Greenhorn said. There had been “a significant increase in wholesale energy prices” and suggested that the company had “done our best to absorb these costs [but] we can no longer do so”.
His comments about rising prices on international markets echoed the sentiments expressed by Bord Gáis Energy, which last month applied to the commission for gas price increases of 28 per cent.
Bord Gáis has yet to have its gas price increases sanctioned. Both Airticity and ESB Electric Ireland can set their prices as they wish as their prices are not controlled by the energy regulator.
The commission has yet to decide what level of price increase it will allow to Bord Gáis Energy although it suggested that it would be closer to 22 per cent than the 28 per cent sought by the company. The company has already increased its electricity prices by 12 per cent.
The ESB announced a range of electricity discounts in April although it is thought that it will follow the two other players in the market with increases in the coming days.