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Market infrastructure and capacity issues coupled with increasing wholesale energy prices leading Pinergy to announce price rise

Pinergy
12 May 2021

Pinergy, the smart clean energy provider has today announced a planned increase to its standard residential energy prices from 11 June 2021.  The announcement comes following ongoing grid infrastructure and capacity challenges, coupled with sustained increases in the price of electricity in the wholesale energy market.

The change will result in a Standard unit rate price increase of 2.5c. For a typical household, this will amount to an 8.2% increase, equivalent to a €2.29 per week increase (incl. VAT) in the Estimated Annual Bill (EAB) based on a domestic customer using typical consumption per annum on standard tariffs.

Pinergy CEO, Enda Gunnell, says: “As an independent supplier of electricity, we purchase electricity for our customers exclusively from the wholesale energy markets. Unfortunately, due to significant market infrastructural and supply issues outside our control along with further commodity price increases, we are being negatively impacted by having to pay higher prices to secure our energy supply.  A key contributory factor in this development has been the increasing and unprecedented level of scheduled, unplanned and sustained power outages at some of the major national energy generation plants, some of which are not expected to be operational again until 2022.

“Actions and priorities need to be put in place urgently in order to ensure security of supply is protected as electricity demand is expected to significantly increase over the coming years as part of the national energy transition. As a country, we are on journey to deliver 70% renewables, but we need to act now and with pace in order to build a modern national energy infrastructure that has the capacity to meet demand and is optimised for the full breadth of energy solutions including solar, storage and demand side management.  While today’s infrastructure has served its purpose well, the time is now right to create an efficient and future-proof electricity infrastructure that is fit for the energy market as envisaged in the Government’s Climate Action Plan.

“We are very disappointed to be facing sustained price increases, which will in turn impact on our customers.  I would however like to reassure our customers that Pinergy will be doing its best to continue to offer value & insights to reduce energy consumption and waste. In the short term, we anticipate a significant reduction in the PSO levy may be forthcoming, as higher power prices usually mean lower supports are payable to renewable generators through the PSO levy, which may cushion consumers against increasing electricity prices.”

Pinergy is now engaging directly with the industry, policy makers and political stakeholders, in order to raise its concerns and to have these issues addressed as urgently as possible.

 

New Standard Rates & Standing Charges – effective from 11 June 2021

24 Hour Standard Rate (ex. VAT): 22.48c/kWh

Standing Charge (ex. VAT): 37.26c/day (no change)

Daytime Standard Rate (ex VAT): 23.24c/kWh

Night-time Standard Rate (ex VAT): 14.8c/kWh

Standing Charge (ex. VAT): 50.79c/day (no change)