Energy companies will be asked to outline the specific measures they are going to bring forward this winter for those at risk of energy poverty.
Minister for the Environment Darragh O’Brien met with Energia, Bord Gáis, Electric Ireland and SSE on Friday amid political pressure over price hikes announced by companies in recent weeks.
In a statement afterwards, Mr O’Brien said the meetings were “constructive”. He said they would align with the work of the National Energy Affordability Taskforce to ensure households and businesses are protected “and that particular protections are in place for those most at risk of energy poverty”.
“I have asked the companies to outline the specific measures they will bring forward this winter, alongside the actions Government is considering, so that we can deliver real and practical supports to consumers,” Mr O’Brien said.
“The taskforce will continue its work in the weeks ahead and will provide an interim report with recommendations on further measures to reduce energy costs.”
It follows price hikes from energy companies ahead of the cold-weather months. Last week, SEE Airtricity said it was raising standard variable household electricity prices and standing charges by 9.5 per cent from October, which it attributed to “ongoing wholesale volatility” and the “higher cost of doing business”.
The move will see the average bill rise by about €12 per month. Though domestic gas rates are to remain unchanged, it is estimated to affect about 200,000 customers.
Earlier in September, Bord Gáis Energy announced that it would increase prices by 13.5 per cent and standing charges by 12 per cent from October 12th, causing the average bill to rise by approximately €200 a year.
Similarly, Pinergy and Energia increased standard residential electricity prices by 10 per cent and 12 per cent respectively.
The price increases come as the Government puts the finishing touches to its budget – the first since 2021 which will not contain universal electricity credits applied to household bills. Those credits shielded bill payers from the worst effects of rising utility costs driven by high inflation.
Energy-bill arrears have been steadily increasing in recent months. Opposition parties has repeatedly targeted the Coalition over its decision to end the credits, while calling on ministers to bring the energy companies to heel over the increases.
In a statement on Friday, Social Democrats TD Jennifer Whitmore, the party’s energy spokeswoman, called out increases by Energia. She said the annual increase being imposed on customers is “way beyond the additional cost energy companies are incurring” from increased operator and network charges.
“I therefore find it highly offensive that they are relying on such a flimsy excuse to justify extortionate price hikes,” she said.
The Commission for Regulation of Utilities (CRU) said this week it would investigate the claims by Energia that upcoming price increases were regulator-sanctioned and “unavoidable” to see if they were misleading.
Energia’s price rise on October 9th will add, on average, €200 to an annual household bill – significantly more than the CRU has indicated it will require.
Mr O’Brien convened a cross-departmental energy affordability taskforce in April, which was told to deliver options on support measures for the budget over the summer.
