Householders are in for a nasty shock as electricity bills are set to jump by almost €90 a year starting tomorrow.
Over one million customers are going to be hit by rising utility bills as the Public Service Obligation (PSO) levy will see a 130% increase for 2020/21.
The PSO levy for last year was €38.68 a year including VAT but will rise to €88.80 (inc. VAT) and is the second-highest the levy has ever been since it was introduced in 2010.
The PSO is a Government levy that is charged to all electricity customers in Ireland.
Additionally, Electric Ireland will hike up its prices by 3.4% from tomorrow and Prepaypower is to increase its electricity prices by 2.9% from Sunday.
In both cases, the suppliers have cited increased electricity network operating costs as the main reason for the price hikes.
The combination of the 130% increase in the PSO levy and the price hike by the two utility providers will see almost €90 a year added to people's electricity bills.
Daragh Cassidy, Head of Communications and PR at comparison and switching site bonkers.ie, says: “At a time when energy usage in the home has probably never been higher due to more of us working and socializing at home due to Covid, it’s really important that people switch supplier regularly to ensure they’re getting the very best value.
“Businesses seldom reward loyalty and if you want to be on the best deal you have to shop around regularly.
"You can’t presume that just because you’ve been with a particular supplier for several years that they’ll return the favour with cheaper prices. If anything it’s the opposite.
"This applies to all household bills but particularly energy.
"That’s because energy companies all offer really great introductory rates to those who switch to them.
"However, these discounted rates usually expire after 12 months.
"This means if you don’t shop around and switch again after your 12 months are up you’ll be bumped onto the supplier’s far higher standard rates and will end up paying far more each year for your gas and electricity. "
“Discounts of over 40% are now available to those who switch, meaning you could save yourself almost €500 a year right now just by switching. However if you live in a poorly insulated home or in a home with more than three bedrooms, your savings are likely to be even more.”
