SSE Airtricity today announced its second price increase of the year, becoming the fourth energy supplier to do so in the last couple of months. From December 3rd, its electricity prices will increase by 6.3% and its gas prices by 6.9%.
SSE Airtricity state that the move is in response to further rises in external costs in recent months, including unprecedented increases in wholesale energy prices, as well as increases in electricity transmission charges.
The standard price of electricity will increase by 6.3% or €1.18 per week, while the standard price of natural gas will rise by 6.9% or €1.01 per week.
Over the course of a year, these increases will add an average of €61.36 to electricity bills and €52.52 to gas bills.
The increases are a result of external factors outside SSE Airtricity’s control. Continued increases in wholesale fuel costs have seen the price of gas rise by a further 17% over the last 5 months, having increased by over 20% in the 12 months prior.
David Manning, Director of Home Energy at SSE Airtricity, said:
“Unfortunately these price increases have been unavoidable due to further and unprecedented rises in wholesale energy costs, as well as increases in electricity transmission costs, which have a direct impact on suppliers. We’ve done everything we can to minimise the impact of this market volatility on our customers and we’re committed to passing on any future savings as soon as we can.”
When will the hikes end?
In the last two months, we’ve seen Flogas, Pinergy and Panda Power announce price hikes all coming into effect this month.
Over the summer, eight out of Ireland’s ten energy suppliers hiked prices so it’s likely that this second round of hikes will continue.
We’ve yet to see the two biggest players, Electric Ireland and Bord Gáis Energy announce subsequent hikes since their respective increases over the summer but it’s likely that they’ll follow suit in the coming weeks if what we’ve seen so far is anything to go by.
Is there still good value to be had?
Yes of course! You can offset imminent price hikes by switching energy suppliers in just a few clicks, making an average saving of close to €300.
And SSE Airtricity is still offering value in other ways. If you’re a fan of smart technology, its new Smart Home Bundles are definitely worth looking at.
When you sign up you’ll get a free Climote, Amazon Echo as well as a free Amazon Echo Dot or Spot; all of which collectively would come to well over €600 if you were to buy them.
Why not compare all offers from all suppliers now and see how much you could save?
1. Typical weekly equivalents based on a €61 annual increase in the cost of electricity and a €52 annual increase in the cost of gas. Costs of increases based on a household customer on 24hr SmartSaver Standard credit meter tariffs (Direct Debit with eBilling). This will mean a typical annual bill of €1,036 for electricity (consumption of 4,200 kWh) and €806 for gas (consumption of 11,000 kWh).
2. Price change applies to 273,180 household electricity customers and 92,923 household gas customers, based on Commission for the Regulation of Utilities ‘Electricity and Gas Retail Markets Report Q1 2018’, published 26 September 2018.
3. 16.9% change in forward NBP wholesale gas costs based on an 11-month comparison of UK Natural Gas Futures, 26 June 2018 (63.08 cent per therm average for November 18 to September 19 products) and 26 October 2018 (73.78 cent per therm average for November 18 to September 19 products); source: Intercontinental Exchange Settlement Prices (NYSE:ICE), Central Bank of Ireland Exchange Rates.
4. 21.75% change in forward NBP wholesale gas costs based on 12-month comparison of UK Natural Gas Futures, 4 May 2017 (50.73 cent per therm average for Summer/Winter 18 product) and 4 May 2018 (61.78 cent per therm average for Summer/Winter 18 product); source: Intercontinental Exchange Settlement Prices (NYSE:ICE), Central Bank of Ireland Exchange Rates.
