The Irish government has pledged to alleviate fuel poverty, after the announcement of another energy price hike.

Low-income families look set to feel the biggest impact of ESB's 17.5% price increase, disclosed today.

The electricity supplier has attributed the two-monthly cost upsurge of €30 to spiralling international energy prices.

But Families Minister Mary Hanafin has stepped in, with a fuel allowance increase of 16%, bringing the government's annual contributions per household to €540.

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However, the squeeze on energy customers looks set to continue, with a further Bord Gáis price 20% increase expected in September.

Minister Hanafin said: "Any increase in fuel affects everyone right across society, increasing both households and business costs. My priority is to ensure that those who most need help with rising energy costs get that support from the Government."

Around 358,000 Irish pensioner and low-income families qualify for electricity and gas allowances through the Household Benefits package.

The initiative provides support with heating, light and cooking costs.

The fuel allowance increases are expected to cost €159m this year.

Today's 17.5% ESB increase is the biggest in the history of the state.

Initially the firm requested the energy regulator to sanction a 30% increase.

(PR/JM)