This is the second price increase in the space of a number of months for Pinergy customers and will add approximately €120 to the annual electricity bill.
In a surprising announcement pay-as-you-go and smart energy provider Pinergy has announced a planned increase of a whopping 8.2% to its standard residential electricity prices.
This news comes only one month after the energy supplier last increased its prices for customers.
Pinergy implemented a price increase of 4.2% for customers at the beginning of April, adding an extra €53 per year to customers' annual bills.
A third price increase of 2.9% came into effect last November.
With the news potentially sparking yet more increases from other suppliers, we take a look here at Pinergy’s announcement in full and what it means for customers' pockets.
Electricity price increase
Pinergy is set to implement an 8.2% increase in the cost of its residential electricity which will come into effect from 11th June, a little over two months after its April increase.
The increase will see its standard unit rate rise by 2.5c which equates to an additional €2.29 per week (inc. VAT).
All things considered the news means Pinergy customers can expect to pay close to €120 extra per year on their Estimated Annual Bill (EAB).
Coupled with April’s increase, customers have been hit with additional costs of slightly more than €170.
Pinergy's new standard rates effective from 11th June can be seen below.
|
Rates |
Old rate as of 01/04/2021 |
New rate as of 11/6/2021 |
|
24-Hour Standard Rate (ex. VAT) |
19.98c/kWh |
22.48c/kWh |
|
Daytime Standard Rate (ex. VAT) |
20.74c/kWh |
23.24c/kWh |
|
Night-time Standard Rate (ex. VAT) |
12.30c/kWh |
14.80c/kWh |
Why are prices increasing?
Pinergy said in a statement that the decision to increase its prices for the second time this year is due to “ongoing grid infrastructure and capacity challenges, coupled with sustained increases in the price of electricity in the wholesale energy market.”
Speaking about the reason behind its decision to increase its prices, Pinergy CEO, Enda Gunnell said:
As an independent supplier of electricity, we purchase electricity for our customers exclusively from the wholesale energy markets. Unfortunately, due to significant market infrastructural and supply issues outside our control along with further commodity price increases, we are being negatively impacted by having to pay higher prices to secure our energy supply.
Actions and priorities need to be put in place urgently in order to ensure security of supply is protected as electricity demand is expected to significantly increase over the coming years as part of the national energy transition.
He went on to say that Ireland’s energy infrastructure is in need of development in order to meet renewable energy targets in the future.
As a country, we are on a journey to deliver 70% renewables, but we need to act now and with pace in order to build a modern national energy infrastructure that has the capacity to meet demand and is optimised for the full breadth of energy solutions including solar, storage and demand side management. While today’s infrastructure has served its purpose well, the time is now right to create an efficient and future-proof electricity infrastructure that is fit for the energy market as envisaged in the Government’s Climate Action Plan.
Yet more price increases?
It was only in February and March of this year that seven energy suppliers increased their prices, again attributing the blame to increased wholesale costs and associated network costs.
SSE Airtricity, Energia, Flogas, Bord Gáis, Panda Power, Glowpower, and of course Pinergy have all increased their prices in 2021.
However, with Pinergy’s announcement not long after its first price increase in April, it’s suspected that customers may be facing even more price increases in the coming weeks.
The news also follows an increase to the Public Service Obligation (PSO) levy which recently came into effect, adding an extra €88.80 per year to residential electricity customers' bills.
Additionally, the latest statistics from Eurostat have shown that Ireland now has the fourth most expensive electricity in the EU. Tune in to our latest podcast where we discuss Ireland's electricity prices and what it all means for customers.
However, only time will tell what’s in store for consumers and whether more suppliers are lining up to further increase their prices.
At any rate, make sure to keep an eye on our blog and social media channels to keep abreast of the latest developments!
In the meantime and if you haven’t already…
Switch and save!
Households looking to offset the price increase should know that the quickest and easiest way to do so is to compare suppliers and switch to a cheaper supplier on bonkers.ie.
At the moment someone who is paying standard rates and who switches suppliers could save themselves around €444 a year on average. It’s super quick and easy to switch and can all be done on bonkers.ie in the space of a few minutes.
Use our energy comparison tool to compare the best deals today across all 14 energy suppliers nationwide.
If you’re looking for more information on why energy prices are increasing, take a look at our recent blog post on the topic. Alternatively, if you’re seeking advice when it comes to switching, check out our helpful guide on 7 things to consider when switching energy supplier.
You can stay up to date on all the latest energy news with our blogs and guides.
Get in touch
Are you a Pinergy customer disappointed with today's news? Would you consider switching energy supplier to save? Let us know in the comments below!
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