Customers of Energia are being hit with electricity price increases of up to 12 per cent with almost immediate effect in a move that is likely to cost many households more than €200 a year.

The company said the price changes – which kick in on October 9th – were “now unavoidable” as a result of ongoing, substantial increases in electricity system operator and network charges.

It said the regulatory approved non-energy charges, which are applied to electricity suppliers, “are required to recover the costs of ensuring security of supply, addressing network constraints and investing in the electricity grid”. It added that the “expenditure is needed to ensure reliability, efficiency and decarbonisation of the electricity supply in Ireland”.

Energia electricity customers will see a 10.9 per cent increase to the average annual bill which equates to €3.94 per week.

Its dual fuel customers will see a 6 per cent increase to the average annual bill which equates to €3.92 per week.

Customers on Energia’s Smart Meter electricity plan will see a 12.1 per cent increase to the average annual bill which equates to €3.73 per week while those on Smart Meter dual fuel plans customers will see a 6.2 per cent increase to the average annual bill which equates to €3.71 per week.

The price changes only impact electricity customers and there is no change to Energia gas prices.

“Over the last three years, we have absorbed several increases in system operator and network costs and have decreased our prices twice,” said Energia’s customer solutions managing director, Gary Ryan.

“This price change is directly linked to increasing system operator and network charges associated with addressing network constraints, maintaining system security, and investing in the grid which support the required broader enhancement of the electricity network and market operation across Ireland.”

He said the “scale of the cumulative system operator and network charges to date has had a significant impact on our current customer price structures, making this price change now unavoidable”.

He added that while the company welcomes “overall investment to support the development of the electricity network and ensure security of supply, it does increase costs for electricity suppliers and customers”.

“As such, we would encourage the Government to further its direct exchequer investment in the network to not only enhance it but also offer electricity users pricing stability.”

“This is a pretty hefty increase. But wasn’t unexpected,” said Daragh Cassidy of price comparison and switching site bonkers.ie

“Although wholesale energy prices have reduced hugely since the height of the energy crisis in 2002, they still remain high. For example, wholesale electricity prices remain around 80 to 90 per cent above the level they were at before the war in Ukraine broke out. It’s similar for gas. And it’s looking increasingly likely that they’ll never return close to pre-war levels.

“On top of this, costs for the upkeep of the electricity grid in particular keep on rising,” he noted

Mr Cassidy pointed out that around 30 per cent of the price for electricity and gas goes to Eirgrid and ESB Networks, and Gas Networks Ireland for the upkeep of the electricity and gas networks respectively.

“Households don’t see these charges on their bills as they’re incorporated into the unit rate as well as the standing charge that we all pay. But these costs have been increasing over the past few years,” he said.

“For example last year the energy regulator, the CRU, approved a hike in grid fees for the electricity network that worked out at just over €100 a year per household. And last month it approved another hike of just under €30. And more hikes are coming next year. So some of these increases are now being passed on to consumers.”

He warned that all the other suppliers in the market are faced with the same situation, so many are likely to follow suit by the end of autumn.“Unfortunately the high prices we’re now paying for our energy look like the new normal,” he concluded