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Back to Press Releases 01 September 2022

Electric Ireland Announces Energy Price Increases Effective from 1st October 2022

  • International energy crisis continues to impact energy prices with unprecedented increases in wholesale gas in excess of 700% in the last 12 months and over 200% since June 2022 alone
  • Electric Ireland will increase residential electricity bills by 26.7 per cent and residential gas bills by 37.5 per cent with effect from 1st October 2022
  • Electric Ireland continues to have a range of measures in place to support customers, including payment plans and a €3 Million Hardship Fund

Thursday September 1, 2022

Due to unprecedented increases in international energy market prices and their impact on wholesale gas prices, Electric Ireland has today, (1st September 2022), announced plans to increase residential electricity bills by 26.7 per cent and gas bills by 37.5 per cent with effect from 1st October 2022. 

The increases equate to €37.20 per month on the average residential electricity bill and €42.99 per month on the average residential gas bill, based on the estimated annual bill as defined by the Commission for Regulation of Utilities (CRU). 

Commenting on the announcement, Pat Fenlon, Executive Director, Electric Ireland said: “This continues to be a very challenging time for customers, and an unprecedented time in the energy industry with increases to wholesale gas prices in excess of 700% over the last 12 months and 200% since June 2022 alone.

He continued: ‘It is with considerable reluctance that we are increasing electricity and gas prices again for our customers, which is necessary given the continuing increases in wholesale energy prices, particularly gas. To put that into context, this time last year wholesale gas prices for winter were circa. GBP£1.15 per therm, and as of last week, this winter’s prices were circa. GBP£7.70 per therm.

We realise these price increases will be difficult for many customers to absorb and we are committed to helping our customers during these difficult times. We encourage any customer having difficulty in paying bills to engage with us and we will work with them to agree a manageable payment plan.   In addition, our €3 million Electric Ireland Hardship Fund is available and will be administered on our behalf by our partners SVP (Society of St Vincent de Paul) and MABS (Money Advice and Budgeting Service).”

Electric Ireland offers a range of solutions to help customers with financial challenges including flexible payment plans, payment holidays, PAYG meters, energy use insights from their Smart Meter along with energy saving tips and advice available online at electricireland.ie.

ENDS/

Notes to Editor 

How is the price increase broken down in customer bills?

Electricity

  1. Customers will see their average electricity bill increase on 1st October 2022 by 26.7% including PSO and VAT based on the estimated annual bill as defined by the Commission for Regulation of Utilities (CRU). This equates to €37.20 per month/ €446.42 per annum.
  2. PSO Levy is calculated from October 1st, 2022, when the CRU is setting the PSO levy to zero with a commitment to implementing an enduring mechanism to enable payments to customers as soon as possible within the 2022/23 PSO period. The negative PSO Levy for this year arises from the design of the new RESS renewable support scheme, which means that renewable generators return market revenues above a certain level to Levy customers, and also from the return of overpayments from a previous period when wholesale prices and revenues increased above forecast levels. From a customer impact perspective, the 2022/23 PSO levy, as calculated, will result in an annual payment of €89.10 for domestic customers as per CSO published guidance in July 2022. For more see CRU Publishes Public Service Obligation Levy for 2022/23 - Commission for Regulation of Utilities
  3. VAT is calculated at the current, reduced rate, of 9%
  4. Customers will see their electricity unit rate increase by 38.24% 
  5. There is no increase to the electricity standing charge

Gas

  1. Customers will see their average gas bill increase on 1st October by 37.5% including Carbon Tax and VAT based on the estimated annual bill as defined by the Commission for Regulation of Utilities (CRU). This equates to €42.99 per month/ €515.93 per year
  2. VAT is calculated at the current, reduced rate, of 9%
  3. Customers will see their gas unit rate increase by 47% 
  4. There is no increase to the gas standing charge

Customer Support

At Electric Ireland we are aware that some of our customers may experience even more financial difficulties and uncertainty this year than in the past. We have put in place a range of initiatives to support customers in such circumstances. 

  • Included is a €3 million Electric Ireland Hardship Fund, announced in June 2022 and now open to applications from Electric Ireland customers who have difficulty paying their bills. 
  • The fund will operate throughout the Winter months and into next year to ensure customers who need assistance in paying bills are supported. Access and administration of the fund and issuance of energy credits will be managed by SVP and MABS as has been the case with previous Electric Ireland funds of this nature.
  • This brings to €6 million the amount Electric Ireland have committed since Winter 2020, to provide additional support to those of our customers who experience difficulty in paying bills, not including bad debts.
    1. €3 million Electric Ireland Hardship Fund, announced in June 2022, detailed above.
    2. In March 2021, a €2 Million Hardship Fund was announced to support customers who were having difficulty in paying bills initially as a result of the Covid pandemic and then as a result of increasing energy costs. 
    3. In December 2020 Electric Ireland administered €1 million to support 10,000 registered vulnerable customers via a Christmas credit
  • As a matter of course, Electric Ireland engages with any residential customer who has difficulty paying their bills, in line with the voluntary Industry Energy Engage Code and we encourage any Electric Ireland customer who has difficulty in paying their energy bill to contact us and we will work with them to put in place a manageable payment plan, of which we have many thousands in place at present.
  • Electric Ireland works with Fuel Poor customers who sign up to the Household Budget Scheme, or Industry Solution Prepayment Meter as a way to pay their energy bills and also apply a 5% discount. 
  • We also provide several flexible payment options to help customers, including an Equaliser product that enables customers to spread their energy costs in equal payments across the year or to take a payment holiday by agreeing a plan to pay their bills over eleven months instead of twelve
  • Electric Ireland adheres to the recommended service requirements, including customer protection measures, in their dealings with customers as stipulated in the recently revised CRU Supplier Handbook.
  • Customers who are experiencing financial difficulty or having trouble paying their energy bills are asked to please call our team on 1800 372 372 or email service@electricieland.ie