Popular Irish electricity company 'forced' to increase prices from next month
PrepayPower announced that the wholesale costs due to the conflict in the Middle East have increased
A popular Irish electricity company has revealed that it has been "forced" to increase its prices from next month.
PrepayPower announced that the wholesale costs due to the conflict in the Middle East have increased, meaning it is "forced" to increase its prices as a result.
The price change will take effect from June 1st, according to The Journal.
It's estimated that annual electricity bills will rise by 8.8% and gas by 10.6%.
For an average household, this will add an extra €168 per year for electricity and €171 for gas.
The increase comes following an eight-month price freeze that came into effect for the winter.
"PrepayPower has absorbed these increases for as long as possible but can no longer delay the adjustment," a spokesperson for PrepayPower said.
"We will continue to do everything we can to minimise the impact on our customers and to help them control their energy costs," Eric Mullane, Managing Director of the company, said.
Meanwhile, Daragh Cassidy of Bonkers.ie told The Journal that up until now, PrepayPower prices were around 20% cheaper than the rest of the market.
"This was always unlikely to last indefinitely. And to be honest, I’m surprised the electricity hike wasn’t a bit bigger," he said.
He also noted that wholesale gas prices are "highly volatile" and have increased by about 45% since the beginning of the conflict in the Middle East.