Prices increase from 14 July in response to higher wholesale costs

All news, Market Insights

1st June 2018

Prices increase from 14 July in response to higher wholesale costs

In response to sustained increases in wholesale energy costs on global markets, SSE Airtricity is today announcing that it is increasing its standard household energy prices from 14 July 2018.

A typical household dual fuel bill will increase by 8.9% on average or €2.70 per week. For single fuel customers, the standard price of electricity will increase by 6.4% or €1.13 per week while the standard price of gas will rise by 12.3% or €1.57 per week.

This is the first increase in SSE Airtricity’s gas prices since 2013 and only the second in electricity prices in the same five-year period. It follows a period of successive price cuts from 2015 during which SSE Airtricity reduced its standard gas and electricity prices for customers by 9%. However, continued volatility in wholesale energy markets has seen sustained increases in fuel costs outside the direct control of SSE Airtricity, with the price of gas rising by over 20% in the last 12 months.

David Manning, Director of Home Energy at SSE Airtricity, said:

“The decision to increase energy prices is never taken lightly. It is in direct response to rising global energy costs outside of our control, and especially the sustained increases in wholesale gas prices over the past 12 months.

“We’ve done everything in our power at SSE Airtricity to protect our customers from wholesale market volatility. We’ve kept our gas prices as low as possible particularly during the recent harsh winter and we’ve worked hard to reduce our own internal costs at the same time. However, we continue to experience sustained increases in wholesale costs and regrettably these eventually have to be reflected in our prices.” 

1. Typical weekly equivalents based on a €59 annual increase in the cost of electricity and an €82 annual increase in the cost of gas. Costs of increases based on a household customer on 24hr SmartSaver Standard credit meter tariffs (Direct Debit with eBilling) with a typical annual bill of €975 for electricity (consumption of 4,200 kWh) and €754 for gas (consumption of 11,000 kWh). Figures inclusive of unit rate, standing charge and VAT. Actual cost varies according to meter type, individual tariff and consumption.
2. Price change applies to 286,613 household electricity customers and 94,576 household gas customers, based on Commission for the Regulation of Utilities ‘Electricity and Gas Retail Markets Report Q3 2017’, published 15 January 2018.
3. 21.75% change in forward NBP wholesale gas costs based on 12-month comparison of UK Natural Gas Futures, 4 May 2017 (50.73 cent per therm average for Summer/Winter 18 product) and 4 May 2018 (61.78 cent per therm average for Summer/Winter 18 product); source: Intercontinental Exchange Settlement Prices (NYSE:ICE), Central Bank of Ireland Exchange Rates.