In a move that marks the end of a long period of price stability for many, PrepayPower has confirmed it will hike electricity prices by 8.8% and gas prices by 10.6%. The new rates will take effect on June 1, 2026, hitting roughly 180,000 electricity customers and 60,000 gas customers across Ireland.
For the average dual-fuel household, these changes are not minor. The electricity increase will add an estimated €168 to the annual bill, while the gas hike adds €171. Combined, families using both services will need to find an extra €339 per year—or about €6.50 per week—to keep their homes powered and heated.
The company stated that the decision was “forced” by an unprecedented rise in wholesale energy costs. While global prices had shown signs of stabilizing early in 2026, the recent escalation of the conflict in the Middle East has thrown markets back into chaos. Specifically, the blockade of the Strait of Hormuz has restricted a massive portion of the world’s energy supply, causing wholesale gas costs to reach levels three times higher than those seen before the war in Ukraine began.
“We have absorbed these increases for as long as possible,” said Eric Mullane, Managing Director of PrepayPower. “Last winter, we chose to freeze our prices to shield our customers during the peak usage months, even as other suppliers were raising theirs. However, the sustained instability in the global market means we can no longer delay this adjustment.”
While the headline figures are 8.8% and 10.6%, the underlying unit rates are rising even faster. The unit rate for electricity is climbing by just under 12%, and the gas unit rate is increasing by nearly 14%. The reason the overall bill increase is slightly lower is that PrepayPower has opted to keep its standing charges unchanged. This offers a small measure of relief to low-usage households, as the fixed daily cost of maintaining the connection will not rise.
Industry experts warn that PrepayPower is simply the first domino to fall. Darragh Cassidy of Bonkers.ie noted that because PrepayPower and Electric Ireland had maintained price freezes over the winter, their rates were significantly lower than the rest of the market. Now that wholesale prices have risen by nearly 50% due to the Iran conflict, it is almost certain that Electric Ireland—which serves over a million people—will follow suit with a price hike announcement in the very near future.
The announcement has immediately entered the political arena. Opposition parties argue that the government’s current “wait and see” approach is insufficient. With the state running budget surpluses, Sinn Féin has demanded an Emergency Budget to introduce direct supports for workers. They argue that pay-as-you-go customers are often among the most financially vulnerable and are the first to feel the “self-rationing” effect—where families literally sit in the dark because they cannot afford to top up their meters.
As June 1 approaches, the 240,000 households affected are being encouraged to use the company’s app to track their daily usage more closely. However, with the “era of cheap energy” still a distant memory, many fear that this is only the beginning of a difficult summer for Irish consumers.
