Electric Ireland has announced that it will be increasing its electricity and gas prices from July 1 as wholesale prices have gone up.

The company said that the new rates will see electricity bills increase by an estimated 8% and gas bills by 7.7%. For the average household this means an extra €11.52 per month for electricity and €9.73 per month for the average gas customer.

These increases are inclusive of standing charges, VAT and charges such as the PSO Levy and Carbon Tax. Standing charges for electricity and gas customers will not be going up.

The standard rates for electricity and gas across the different time of use tariffs are increasing by 9.48%.

Electric Ireland said that the company has a “comprehensive hedging strategy” which has limited the impact of global events. However, wholesale costs have increased significantly, which now makes it necessary to raise retail prices.

The war in the Middle East has choked off roughly 20% of the world’s natural gas supplies with the closure of the Strait of Hormuz.

Ireland still relies heavily on gas for electricity production, which allows it to set the price for electricity

Commenting on the announcement, Pat Fenlon, Executive Director, Electric Ireland said, “The conflict in the Middle East continues to drive volatility in wholesale energy costs which have increased significantly.”

“Last winter, we acted to protect our customers by reducing gas prices and holding electricity rates steady during the period of highest demand, while most other suppliers increased their prices.”

“The current change represents the first price increase since October 2022; unfortunately, we cannot delay this increase any further due to the sustained upward price pressure on our wholesale energy costs.”

“We understand that many customers face challenges with ongoing cost of living pressures. Supporting our customers continues to be our priority.”

Mr Fenlon said that Electric Ireland has some of the lowest electricity prices available in Ireland, and focuses on protecting customers wherever possible.

“Alongside our pricing decisions, we are providing a range of supports, including access to Electric Ireland’s Compassionate Assistance fund, flexible payment options, and energy efficiency advice to help customers better manage their bills.”