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Energy supplier Electric Ireland announces 13.3% tariff hike

Energy supplier Electric Ireland has announced a price hike of over 13 per cent to come into effect later this year.
Energy supplier Electric Ireland has announced a price hike of over 13 per cent to come into effect later this year. Energy supplier Electric Ireland has announced a price hike of over 13 per cent to come into effect later this year.

ENERGY supplier Electric Ireland has announced a price hike of over 13 per cent to come into effect later this year.

Electric Ireland will implement a 13.3 per cent in tariffs from October 1 in a move that will effect over 80,000 residential customers. It will see the average domestic bill rise by £63.84 a year from the autumn.

The price rise comes just over a week after Power NI, who supply electricity to more than half - 58 per cent - of homes across the north announced a 13.8 per cent hike.

Outling the rationale behind the price rise, Electric Ireland said it is in direct response to sustained increases in wholesale energy prices.

Sales and marketing manager, Clare McAlister admitted it had been a difficult decision to make.

“Electric Ireland is committed to keeping prices as low as possible. It has been a difficult decision to make, but the wholesale costs required to supply electricity are continuing to rise and we have had to re-evaluate our pricing as a result of these increasing costs," she said.

“We can assure our customers that, even when our price increase is implemented on October 1, Electric Ireland’s prices will continue to remain competitive against other leading suppliers."

Since full entry into the Northern Ireland residential energy market in 2015, over 80,000 customers have joined Electric Ireland, making it the third largest energy brand in the north. The supplier is committed to growing its market share in Northern Ireland and has invested more than £10m and doubled its staff numbers in recent years.

Earlier this month Power NI implemented an almost 14 per cent increase in its electricity tariff, which will also come into effect on October 1. The change will see

the average household bill in the north rise by almost £70 a year (£1.33 a week). Power NI managing director, Stephen McCully said the tariff surge is unavoidable.

“Putting our prices up is the last thing we want to do, but unfortunately we are at the mercy of fluctuating world fuel prices," he said.

“We’ve worked through a rigorous process with the Utility Regulator and our customers can be sure that although unwelcome, this increase is as low as possible and our prices are still cheaper than they were five years ago."

The dramatic hike in electricity prices has been driven by rising fuel costs used in electricity generation such as gas, which has increased by 30 per cent in the last year.