Energia has become the latest supplier to hike its gas and electricity prices, as the Tánaiste said he would not rule out expanding the fuel allowance to help struggling households.

Energia cited global volatility of wholesale energy markets and increased network charges for its price rises, which will come into effect on October 12.

It follows similar increases announced earlier this week by Bord Gáis Energy, and last week by SSE Airtricity.

Energia’s rise will see average household bills increase by 4.73% – around €87 a year – for electricity customers.

Its gas customers’ bills will rise by an average of 9.38% – around €143 a year.

Dual-fuel customers will see an average bill increase of 6.73%, which equates to about €230 a year.

Its standing charge for electricity is increasing by 5%, but its gas standing charge remains unchanged.

Energia has around 220,000 electricity customers and 70,000 gas customers. Gary Ryan, Energia’s head of customer solutions, said: ‘We are always reluctant to increase prices, with a firm focus on offering best possible value to our customers.

‘The ongoing global volatility of wholesale energy markets and increased network charges means that it is now necessary for us to make a price change across electricity, and our first increase to gas since 2022.

‘We fully understand that any changes to pricing affects households. We would encourage customers experiencing difficulties to engage with us for support.

‘We also collaborate with several charitable and support organisations such as St Vincent de Paul, MABS and Alone, and our customer service team are available to speak to any customers.’

Tánaiste Simon Harris said the fuel allowance is ‘the most impactful way we can assist people who are on low incomes and who are at risk of fuel poverty’.

A total of 323,559 domestic electricity customers and 187,792 domestic gas customers were in arrears at the end of June. An ESRI study in April found that only 36% of households in energy poverty were covered by the fuel allowance, a means-tested social welfare payment to help with heating homes during the winter months.

Asked about arrears figures yesterday on RTÉ’s Morning Ireland, Mr Harris said: ‘Isn’t that an argument for seeing if there’s more that we can do in that space?’ He suggested this could be ‘expanding’ eligibility, adding that the fuel allowance had gone up in the last applicable period, with 500,000 households qualifying for direct cash payments.

Mr Harris, speaking from the Fine Gael think-in, said: ‘In relation to gas and electricity, we’ve already taken a decision to reduce VAT, and we’ve reduced the VAT in the last budget. There’s no Government in the world that can insulate everybody from every cost pressure.

‘What we can do in this budget is, across all of the levers at our disposal, try and reduce costs in certain areas.

‘I don’t think we can rule out anything when it comes to energy.’

He said energy credits are a ‘good use of public money’.

Darragh O’Brien, Energy Minister, encouraged people to retrofit their homes or switch providers to save money on gas and electricity.

Asked on Today FM’s The Last Word whether there would be budget measures to offset rising costs, he said: ‘We’re not going to be able to soften every increase in energy prices,’ adding ‘permanent changes’ can be made to reduce energy use, consumption and bills.

He encouraged people to use State reimbursement schemes, which could save them up to €1,600 a year.