Electric Ireland to hike electricity and gas prices as much as 8pc

Electric Ireland will increase residential electricity bills by 8% and residential gas bills by 7.7% from July 1. The utility attributes the change to knock-on effects from conflict in the Middle East that have pushed wholesale energy prices higher. Ireland already has the highest electricity costs in the EU, with prices nearly 40% above the EU average. The July 1 increase is the first since October 2022, after the Russian invasion of Ukraine triggered a major rise in global gas prices. Since then, Electric Ireland has cut gas prices three times and electricity prices twice, and it froze electricity prices last winter. Households face additional pressure from rising costs, with energy arrears reaching the second-highest level on record.

"Residential electricity bills will increase by 8pc and residential gas bills will increase by 7.7pc, the State owned utility said. The hikes come on top of figures from EU statistics agency Eurostat that show Ireland already has the highest electricity costs in the EU, with prices almost 40pc above average. Electric Ireland is blaming the latest hikes on knock on effects of the conflict in the Middle East which has resulted in significant upward price pressure on wholesale energy markets."

"Oil prices have hovered in or around $100 a barrel since the Iran war kicked off and wholesale gas prices, which contribute to both electricity and gas prices have also been pushed higher, though not nearly as badly as in 2022 during the Russian invastion of Ukraine. The July 1st hike is the first time Electric Ireland has increased prices since October 2022, that timer after the Russian invasion of Ukriane triggered a huge hike in global gas prices."

"ESB owned Electricity Ireland said it has cut gas prices three times and electricity prices twice since then. It froze electricity prices last winter, when most other suppliers increased prices, the company said. Even so, the price rises come as households are already being squeezed by rising costs that wage growth is not expected to outpace this year."

"Figures last month from the energy regulator showed the number of households in arrears on their energy bills had jumped to its second-highest level on record in the early months of this year. The Commission for the Regulation of Utilities (CRU) data showèd close to 317,000 households were behind on their electricity bills in February. Daragh Cassidy of online price comparison site Bonkers.ie said Electric Ireland's move will impact around 1.1 million electricity customers and 145,000 gas customers."

Read at Irish Independent