EXPLAINER: What Electric Ireland's new price hike will cost you every year

Electric Ireland electricity and gas customers are still reeling from the announcement that the company's prices will rise by more than 20% in May.

The energy company said that home electricity prices will rise by 23.4% from May 1 for customers in the Republic of Ireland. Gas prices will also jump by nearly 25% from the same date.

But what does it all mean for your pocket?

The price hike practically wipes out the government's recently lauded electricity bill credit of €200. That credit, which actually works out at around €180 off electricity will be accounted for on people's bills in April.

However, this latest price hike from Electric Ireland will see the average electricity bill increase by around €300 a year or €25 per month. Gas customers will pay on average €220 more per year for their bills. 

Even this year, despite the price hike only applying to the eight months from May to December, that will impact people's bills to the tune of €200 more than before. 

The company has blamed the move on the “unprecedented and sustained volatility of wholesale gas prices”.

The move had been expected and follows price increases from other energy suppliers.

Marguerite Sayers, the executive director of Electric Ireland, said: “We are acutely aware that the rising cost of living is causing difficulty for households across the country.

“Unfortunately, the unprecedented and sustained volatility of wholesale gas prices over the last 12 months means that we now need to increase our prices.

“We delayed the increase as long as we could in the hope that wholesale prices would drop back to early 2021 levels, but regrettably this has not happened.”