SSE Airtricity to increase its prices

Those hoping for an end to the long-running energy crisis will be disappointed.

One of the country's biggest energy suppliers is to hike its prices with fears other suppliers may follow suit over the coming months. 

It comes on the back of recent data which showed almost a quarter of gas customers are behind on their energy bills as a result of high prices. 

So how much extra can you expect to pay? Here's everything you need to know...

SSE Airtricity price hike

SSE is increasing its unit rate of electricity by 12.75% and its gas unit rate by 10.50% from 2 April. However its daily standing charge will remain unchanged (as of course will VAT). So that the average electricity bill will go up by 10.50% and the average gas bill by 8.4%, according to SSE.

The increase will apply to all SSE customers who are on a variable tariff. This includes anyone on a discounted tariff. However you'll still get the discount you signed up to. For example if you recently switched to SSE and are getting a 20% discount for the first year, this won't change. Your discount will just be applied to the SSE's new, higher rates.  

The price hike will see the average SSE customer pay around €171 a year more for their electricity and around €114 a year more for their gas.

However those on a fixed-rate tariff with SSE will see no change to their bills.

Why are prices increasing?

Over the past few months the wholesale price of energy has begun to shoot back up.

Colder than average weather at the start of the year which increased energy demand, the end of a Russia-Ukraine gas transit deal, and a drop in EU gas storage levels, all helped push back up the wholesale price of gas to around three times normal levels over the course of the winter. 

And as we use gas to generate over 40% of our electricity, this has a big impact on our electricity prices too. For example, in January the wholesale price of electricity was at its highest level in over two years and up 67% compared to the year before. 

Furthermore, last autumn, the energy regulator the CRU also sanctioned a big increase in network charges or ‘grid fees’ for the upkeep of the electricity and gas networks. And some of that increase is now being passed on to consumers as was always feared.

Will other suppliers follow suit?

Perhaps. 

But it needs to be remembered that over the past two years SSE had cut its prices three times, while almost all the other suppliers had only cut theirs twice.

This meant SSE had the lowest standard rates in the market.

So even after this price hike, SSE's standard gas prices will still be fractionally cheaper than Electric Ireland's. While its standard electricity rates will still be slightly cheaper than Energia's for example.  

However if the wholesale price of energy doesn't start to ease soon, and if the CRU sanctions another big increase in 'grid fees' later this year, then more price hikes from SSE's competitors, and indeed SSE itself, can't be ruled out. 

In short, anyone hoping for a return to cheaper energy bills anytime soon is going to be left waiting. 

SSE Airtricity is committed to working with and supporting our customers and increasing prices is always a last resort. We have worked hard over the past few years to shield customers from the full impact of volatile energy costs. We’re proud to have led the market in customer support measures throughout the cost of living and energy crises, including the largest customer support package in the market and the foregoing of company profits in 2023 in favour of prioritising customer measures. We have reduced electricity tariffs by 31% and gas by 28% since October 2022. 

Worried about your bills?

If you're worried about your energy bills, reach out to your supplier.

Energy suppliers offer a range of supports to help customers who are having trouble paying their bills. And by law, no supplier is allowed disconnect a customer as long as they're constructively engaging with their supplier. The last thing a supplier wants to do is disconnect a household and this is only ever carried out as a last resort.

You should also check what social welfare support you may be entitled to such as the winter fuel allowance or the free electricity allowance. And charities like MABs and The Society Of St Vincent De Paul also provide great advice and support.

And finally, you should also look at switching supplier...

Switch and save on your energy

If you’re looking to reduce your energy bills, remember that you can still save big money by switching supplier which is the quickest and easiest way to offset any price hikes.

All the main suppliers are offering big discounts, of up to 30% or more for an entire year, to new customers meaning you could save hundreds on your bills in just minutes. 

Head over to our energy comparison page to review the options available to you.

Whether you’re looking to compare electricity, gas, or dual fuel deals, bonkers.ie has got you covered.