The PSO levy increased on the 1st of October, the weather is getting colder and wholesale prices are on the rise. Are you prepared for bigger electricity bills?
All electricity bills got a little bit more expensive on October 1st.
That’s because the PSO levy, which is a tax paid by all electricity customers in Ireland, increased for the fifth time in six years.
The levy will add an additional €25 or so to all bills over the next 12 months, and could take the average annual electricity bill in Ireland to over €1,000 (households paid an average of €987 for electricity in 2016).
So, what can you do about it?
Nine electricity suppliers
Ireland now has nine electricity suppliers, thanks to the recent arrival of new player, Just Energy. Competition is fierce, with the majority of suppliers offering big discounts and cashback to new customers.
So, if you’re worried about big electricity bills over the coming months, you’ve got options.
Energia, Bord Gáis Energy and SSE Airtricity are all offering discounts of over 20% if you switch, and Electric Ireland is offering €175 in cashback.
On average, there is €176 to be saved by switching, and the process takes just five minutes. All you need is your MPRN, which is written on your electricity bill, and a recent meter reading.
Last year, wholesale gas prices fell by 19.2%, but the biggest price cuts for existing customers ranged between just 3% and 6%.
Instead of rewarding loyalty, most suppliers passed wholesale savings on to new customers in the form of big discounts when they signed up. The strategy remains the same with most suppliers this year - you’ll get the cheapest prices if you switch suppliers.
In August, wholesale gas prices rose by 30%, which could have a further unwanted impact on household bills over the coming months.
Switch now to get the cheapest prices
Bigger electricity bills are on the way for most households, but by acting now you can offset the increases and enjoy some substantial savings. Compare and switch using bonkers.ie now.