Pay-as-you-go energy provider PrepayPower has announced a price increase for its electricity and gas from June 1, a move expected to impact thousands of customers across Ireland.
It cited the “increase in wholesale energy costs” arising from the Iran war as the reason for the hike.
From next month, the company will increase its electricity prices by 8.8 percent and its gas prices by 10.6 percent.
PrepayPower says that for an average household this will equate to a €3.23 increase per week for electricity and €3.28 for gas.
“This is the first price increase by the company in 3.5 years and follows an 8-month winter price freeze announced last October to shield customers from higher costs during the period of peak energy usage, at a time when most other suppliers raised their rates.
“Sustained instability in global energy markets, driven by the ongoing conflict in the Middle East, has pushed wholesale energy costs significantly higher,” the company said in a statement, adding that it has “absorbed these increases for as long as possible” but that it can “no longer delay the adjustment”.
Managing Director of PrepayPower, Eric Mullane said that while most other energy suppliers had to increase their rates last winter, PrepayPower “went further by freezing prices when usage is at its highest”.
“However, wholesale energy costs have continued to rise sharply, and it is simply not possible to hold out indefinitely. We will continue to do everything we can to minimise the impact on our customers and to help them control their energy costs,” he said.
Over 180,000 households across Ireland will be affected by the increase, with further tens of thousands to be affected by the gas price increase.