€100 increase in energy costs will add to our lockdown bills

FAMILIES will see another €100 added to their energy bills as SSE Airtricity has decided to put up the price of both gas and electricity.

It comes as many households have already seen costs soar due to homeschooling, working from home and lockdown rules.

And now experts fear other suppliers will follow suit.

The hike, due in little over a month’s time, on April 1, means the standard price of electricity will rise by 6.2%, or €1.21 a week, while the standard price of gas will rise by 4.5%, or €0.62 a week. A typical home’s dual-fuel bill will increase by 5.5% on average, or €1.84 per week.

Bonkers.ie, the switching website, said SSE Airtricity has about 250,000 electricity customers and 85,000 gas customers. It calculated that the increase will add around €63 to the average household’s annual electricity bill and €32 to the average annual gas bill.

SSE Airtricity, which is the third largest energy supplier in Ireland, said it was passing on costs beyond its control, including electricity network and market charges, which will affect all energy firms. It said it was the first time it had increased prices since 2018, and followed a price reduction last summer of 2.7% for electricity and 11.5% for gas.

It said the price increase was coming at a time when energy consumption would be dropping due to brighter days and warmer weather. Daragh Cassidy, head of communications at bonkers.ie, said: ‘SSE Airtricity is the first supplier to announce a price hike in 2021 after most of the suppliers committed to a winter price freeze late last year. SSE is the third biggest energy supplier in Ireland behind Electric Ireland and Bord Gáis Energy, so this increase will be felt by hundreds of thousands of customers. And it comes at a time when energy use at home has probably never been higher due to us all being stuck indoors due to lockdown and when many might be struggling financially due to losing their job.’

Mr Cassidy said the charges for maintaining and running the country’s gas and electricity networks have been increased by the energy regulator in recent months.

He said: ‘These charges make up around 30% of the price we pay for our energy, and the increase is now unfortunately being passed on to customers.’ He said the quickest and easiest way to offset the cost was to compare suppliers and switch to a cheaper supplier in the market.

‘At the moment someone who is paying standard rates and who switches suppliers could save themselves around €500 a year on average. It’s super quick and easy to switch and can all be done online in the space of a few minutes,’ he said. ‘Businesses seldom reward loyalty, so if you want to get the best deals and the best prices, you have to be prepared to go find them.’

Eoin Clarke of price comparison site Switcher.ie said the hike is likely to be just the start of what’s to come. ‘It’s going to feel like a bit of a sting to consumers, many of whom are already struggling,’ he said. ‘This is a really worrying time for many people. With high levels of unemployment, paying the bills is a struggle for many families.’

Asked if Bord Gáis Energy was planning any similar price increase, a spokesman said: ‘At Bord Gáis Energy, we keep our prices under constant review and continue to monitor the market closely.’

A spokesman for ESB’s Electric Ireland was also unable to say if hikes were on the way.

A statement from the company said: ‘Electric Ireland is committed to providing the best value in the energy market and continues to have one of the lowest standard unit rates. As part of that commitment, we continuously monitor energy prices, and when we can, we always avail of the opportunity to reduce prices.’

‘Passed on to customers’ ‘You have to go find best deals’