Popular energy provider confirms price hike on electricity and gas

The move is estimated to affect around 180,000 electricity customers and 60,000 gas customers, while other energy providers are expected to follow suit in the coming weeks.

The company has cited the increase in wholesale energy costs, arising from the conflict in the Middle East, as the reason for the price hike.

There will be an 8.8% and 10.6% rise in the estimated annual electricity and gas bills.

"For an average household, this equates to €3.23 per week for electricity and €3.28 for gas," PrepayPower said in a statement.

"This is the first price increase by the company in 3.5 years and follows an eight-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. PrepayPower has absorbed these increases for as long as possible, but... can no longer delay the adjustment."

Managing Director of PrepayPower, Eric Mullane, added: "We will continue to do everything we can to minimise the impact on our customers and to help them control their energy costs.”

Bonkers.ie has estimated that the price hike will affect around 180,000 electricity customers and 60,000 gas customers.

The comparison and switching website also calculates that the increase will add around €168 to the average household’s annual electricity bill and €171 to the average annual gas bill.

Bonkers.ie's Head of Communications, Daragh Cassidy, said the news "isn't surprising".

He explained: "Last autumn, most of the energy suppliers hiked their electricity prices by between 10 and 15% as a result of continued high wholesale electricity costs and an increase in grid and network charges.

"However, PrepayPower, its sister company Yuno Energy, and Electric Ireland all announced a 'price freeze' for the winter months.

"This meant that up until now, these suppliers’ electricity prices were around 20% cheaper than the rest of the market. But this was always unlikely to last indefinitely. And to be honest, I’m surprised the electricity hike wasn’t a bit bigger."

Cassidy said he expects other energy providers to follow suit.

He added: "I’d also expect Electric Ireland, which has close to 1.1 million customers, to announce a similar hike in its electricity prices over the coming days or weeks.

"As for gas, wholesale prices are highly volatile, but they’re up around 40 to 50% since the start of the renewed conflict in the Middle East and are around three times the level they were at before the war in Ukraine broke out.

"Unfortunately, this was always likely to lead to a hike in gas bills eventually, and most of the other suppliers will probably follow with a similar hike over the coming weeks."