The latest energy price increases from Flogas and Panda Power will add hundreds of euro to energy bills nationwide.
Energy price increases have become far too frequent a feature on this blog in recent times but the (unfortunate) reality is that energy prices are on the rise.
Both Flogas and Panda Power are the most recent suppliers to announce an increase in their energy prices, effective from the end of June.
However, the latest news likely won’t come as a shock to many, especially considering Pinergy’s electricity price increase in mid-May. Because as we know all too well, when one supplier announces a price change, the others eventually follow.
That being said, if you’re a Flogas or Panda Power customer an increase in the cost of your energy won’t exactly be welcomed.
We take a look at what the changes mean for both sets of customers below.
What this means for Flogas customers
Flogas has announced an 8.9% increase in its gas prices as well as its standing charge, while its electricity prices and standing charge will increase by a whopping 12.5%.
The price changes are scheduled to take effect from 26th June.
The latest price hikes will add around €77 a year to the average customer’s gas bill and €152 to the average annual electricity bill. So no small change.
This is the second price increase from Flogas since April when it increased its gas and electricity prices by 6.5% and 8.5% respectively.
Taking into account both these increases, it means the average electricity customer with Flogas will be paying €247 more for their electricity each year while the average gas customer will be paying €130 more a year.
Back in October 2020 the energy supplier did cut its gas prices by 10%. So, taking a step back, the overall net impact on last year's gas prices is a 4.4% increase.
Additionally, Flogas was one of few suppliers to implement a price freeze on its residential electricity prices until March of this year.
However, the effect on consumers' pockets now is what matters most.
Citing unplanned outages of large electricity plants on the island, as well as increasing commodity and carbon emission costs as reasons for the increase, Paul Kenny, General Manager at Flogas Energy said:
It is unfortunate that we have to make further increases in our prices this year, however they are necessary due to the same rising wholesale costs that have affected all suppliers. We are keeping our prices as competitive as possible for our customers and will be continually reviewing as the market changes, but it is difficult to forecast any significant improvements in the medium term.
What this means for Panda Power customers
Panda Power has also announced an energy price increase for its customers, this time a 9.8% increase on both its gas and electricity prices.
The changes will come into effect for customers from 25th June.
The price increases will see Panda Power customers paying on average €141 more a year for their electricity and €98 more for their gas,.
Panda Power also increased its electricity prices in April by 7.5%.
Similar to Flogas and Pinergy before, Panda Power blamed the decision to increase the cost of its energy on ‘the continued increase in the cost of wholesale energy, together with significant market infrastructure and capacity issues in Ireland.’
Brendan Traynor, Managing Director at Panda Power said:
The increase is as a result of a couple of key factors beyond our control in providing electricity and gas to our customers. Firstly, the high percentage of power plants on long term outages has reduced the level of power generation available in Ireland which has significantly increased the cost to supply energy over the last 6 months. Secondly, the continued rise in the cost of wholesale electricity & gas.
The decision to increase prices is unfortunate but is unavoidable under the circumstances. We remain committed to offering our customers long-term value and discounted rates each year that they are with us.
What’s happening in the energy market?
One of the main reasons why energy suppliers are increasing their prices is because the costs associated with maintaining the country’s gas and electricity networks are on the rise.
EirGrid and Gas Networks Ireland manage and maintain the country's respective electricity and gas networks. And all suppliers must pay them charges for the upkeep of these networks.
These charges have been increased and are ultimately being passed on by suppliers. They also make up roughly one third of a home’s energy bill, so no small portion.
Another important reason is that around half of our electricity is still generated using fossil fuels and our dependence on it means we’re susceptible to changes in fossil fuel prices. And the price of gas, coal and oil has increased hugely in recent months.
If you want to know more about why energy prices are increasing you can read our in-depth review right here.
Switch and Save
Remember, switching supplier to avail of a discounted rate is still the easiest way for households to offset these increases.
It's quick and easy to switch, can all be done here on bonkers.ie and only takes minutes!
Check out our energy comparison tool right here to switch gas, electricity, or both!
You can also read one of our energy guides on how to switch. We’d recommend our frequently asked questions about switching energy supplier.