Bord Gáis Energy has announced a significant price increase, which will come into effect next month. More suppliers are now expected to follow in the coming days and weeks.
The daily standing charge will increase by similar amounts for gas and electricity customers.
The increase marks the end of Bord Gáis Energy’s ‘winter price pledge’, which protected customers over the colder winter period.
It’s expected that more suppliers will follow suit by upping their prices after BGE’s announcement.
Increased cost to household bills
The latest price hike from BGE is expected to add around €390 a year to the average household’s annual gas bill and €385 to the average annual electricity bill.
Bord Gáis raised its electricity prices three times last year and its gas prices twice.
The last increase from BGE was in October of last year, which added an additional €98 a year to the average customer's gas bill and €123 for electricity customers.
Dave Kirwan, Managing Director with Bord Gáis Energy, said:
We know that today’s announcement is not welcome news. As part of Centrica plc, and with decades of local experience, we will navigate through these unprecedented times with our customers. However, there have been continued increases in wholesale energy costs over the past two years, particularly in the past 12 months. This, together with the expectation that costs will remain both high and volatile for some time, means we are forced to increase our prices.
We know that each customer’s circumstances are different, and we are determined to help those who need it most. That is why we are announcing an energy support fund of €1.25 million in addition to the services we already have in place.
Why are prices still rising?
As with rising energy prices last year, there is a multitude of reasons for the latest surge in prices for customers of BGE, a number of those being:
- High demand for gas worldwide
- Reduced supplies
- Low storage volumes
- Geo-political issues
What’s more, the extreme volatility seen in the energy sector worldwide up to this point has only been heightened and made worse by the recent crisis in Ukraine.
Speaking about its decision to increase prices once more, a spokesperson for Bord Gáis Energy said:
Unfortunately, the continued increases in wholesale energy costs, and the expectation that those costs will remain both high and volatile for some time, means we are forced to increase our prices.
We know that today’s announcement will not be welcome news for consumers, however we have been doing everything we can to shield customers from the impact of rising costs, but we can’t afford to absorb these costs any longer.
You can learn more about why prices are increasing in this blog.
Support for customers under financial strain
Bord Gáis has reassured customers who are struggling to pay their energy bills that supports and services are in place to make sure existing customers can cope with rising costs.
The energy supplier said it recently worked with the Money Advice and Budgeting Service (MABS), and Saint Vincent De Paul to open an energy support fund of €1.25 million.
Switch energy suppliers
If you haven’t changed your energy supplier in some time, or if you’re recently out of contract, make sure to conduct a comparison on bonkers.ie as chances are you could save hundreds on your energy bills.
The only way to save money on the cost of your gas and electricity is to make sure you’re getting the best discount available, either from your existing supplier or from another.
The good news is that comparing tariffs and switching on bonkers.ie is not only free, but it’s also very simple. You can conduct an energy comparison in seconds using our comparison tool here, and then switch and save in a matter of minutes.
For more information on support services available to consumers experiencing difficulty paying their bills, have a read of our energy guide here.
Don’t forget that you can also compare prices and deals for a range of other services on bonkers.ie, including broadband, insurance types and banking products. Take control of your bills and see how much you could save today.
Check out our energy articles
If you have any questions about the energy switching process, take a look at some of our helpful articles and guides below:
- Want to get cheaper energy bills? Here’s how you can do just that on bonkers.ie.
- Considering switching while still in contract? Here’s everything you need to know about energy cancellation fees.
- You should also read our helpful article on 15 ways to use less electricity and save money.
- For more information on the switching process, see our guide here on how to switch and save.
Let’s hear from you
Did you expect Bord Gáis Energy to increase their prices again? Have you switched to save on your gas and electricity bills yet? We’d love to hear from you!