Just over 29% of Irish households are living in energy poverty as providers continue to announce price hikes across the next 12 months.
According to a new report published by the Economic and Social Research Institute, this level exceeds the previous record level of energy poverty in Ireland, which reached 23% in 1995.
Researchers leading this study defined ‘energy poverty’ as any household that is spending more than 10% of its income on energy bills.
Researchers state that the study “presents our estimate of the impact of these energy price increases on measures of energy poverty.
“The measures we estimate are expenditure-based, with households spending more than 10% of income on energy classified as being in energy poverty.
“Relative to 2015/16 data, we estimate that expenditure-based energy poverty has risen from 13.2% to 29.4%, including electricity.”
Due to energy inflation in Ireland and further afield, the weekly costs hitting households are reaching new heights.
The study shows that from January 2021 to April 2022 the cost of running a household has increased by around €21 per week.
This excludes the cost of filling your car, and if this was included the weekly hike in spend rises to nearly €39.
Should energy costs continue to rise, the report suggests that the number of households in energy poverty would rise to 43%.
It also suggests that those who are earning less are bearing the brunt of the cost jump, and while the government opts to cut VAT, fuel duty, and the carbon tax, a more beneficial approach would be to bring in measures targeting those lower-income families.
Things like social welfare increases, lump-sum payments, and fuel allowance increases would therefore be more beneficial to those struggling with meeting their monthly costs.
Price hikes
This comes just one week after Eir customers across Ireland were dealt the latest blow as the mobile and broadband company confirmed price hikes for its nearly two million users.
From August 2022, the first changes will come into force and will add to the rising cost of living in Ireland as many families struggle to meet their monthly expenses.
Included in the increase are landline, tv, broadband, and mobile bills which will increase by €5 a month - adding €60 to the average each year.
On top of this, in January, customers will be subject to a monthly charge of €4.87 if they want their bill to be posted out to them - plus a VAT rate of 23%.
For those who opt to pay their bill over the phone, in January this will result in the same €4.87 charge in a bid to move things entirely online and to direct debit.
Anyone who is late in paying their bill, or misses a month entirely, will be charged a new fee of €15 from 2023 as well.
Elsewhere, Irish PrepayPower customers were told of a confirmed price hike coming in a matter of weeks.
The energy provider confirmed that electricity prices will jump by nearly 10% from July alongside a gas price increase of 20%.
The changes will affect around 170,000 customers’ electricity bills and around 60,000 gas bills nationwide, as the cost of living continues to reach new heights.
The company defended its decision to make these unwelcome changes amid the ongoing increase in energy prices across national and international markets.
Therefore, from July 1, customers will pay on average around €3.05 more a week for electricity and up to €4.65 for gas.
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