SSE Airtricity has announced an increase in electricity and gas prices for customers starting April 2, citing rising wholesale energy costs and network charges as key factors behind the decision.
Price Increases and Impact on Consumers
Under the new pricing structure:
- Electricity bills will rise by 10.5%, adding approximately €171.22 per year to the average household’s cost.
- Gas bills will increase by 8.4%, amounting to an additional €113.91 annually.
- Dual-fuel customers—those using both electricity and gas—will see an average increase of 9.5%, or around €0.78 per day.
- The electricity unit rate will rise by 12.75%, while the gas unit rate will increase by 10.5%.
The price hikes will not affect customers on fixed-rate tariffs.
Market Trends and Reasons Behind the Increase
The move follows recent data from the Central Statistics Office (CSO) showing a 22.3% rise in wholesale electricity prices in January, compared to the previous month. These prices are also 67.7% higher than in January 2024 but remain 56.8% lower than their August 2022 peak.
SSE Airtricity, Ireland’s third-largest energy supplier, serves approximately 245,000 electricity customers and 85,000 gas customers. The company stated that rising external costs, including network charges and wholesale energy prices, have forced the increase.
Managing Director Stephen Gallagher defended the decision, emphasizing that price hikes are 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, including the largest support package and the foregoing of company profits in 2023 to prioritize customer relief.”
Gallagher highlighted that network charges increased by 20% in October 2024, while wholesale energy costs are 18% higher than last year. He noted that while SSE Airtricity absorbed these costs for six months, continuing to do so was no longer feasible.
Consumer Reaction and Industry Response
The announcement has sparked concerns among consumers, particularly as households continue to recover from the cost-of-living crisis.
Daragh Cassidy, from comparison website bonkers.ie, acknowledged that the price increase was “unwelcome news” but pointed out that network fees and wholesale costs have risen significantly.
“The only small reprieve is that this hike is coming at the end of winter, when energy bills typically become less of a burden for households,” Cassidy said.
He also noted that SSE Airtricity had the lowest standard rates in the market prior to this increase, having implemented three price cuts since 2022.
“The question now is whether other suppliers will follow suit,” he added.
Support for Customers
SSE Airtricity has urged customers facing financial difficulties to contact the company directly to explore potential support options.
With energy prices continuing to fluctuate, consumers will be closely watching whether other suppliers introduce similar hikes in the coming months.
