The supplier is to hike its electricity prices in response to rising costs for the upkeep of the electricity network.
Flogas has announced that it's increasing its electricity prices from 25th August.
Its unit rate for electricity and its daily standing charge will both increase by 7%, which will see the average customer's electricity bill go up by around €126 a year.
Gas prices remain unchanged for now, but this move will still hit many households’ budgets.
Who will be affected?
The 7% increase will apply to all customers who are on a variable-rate tariff with Flogas.
If you’re on a fixed electricity tariff, you won’t see any change for now as your price is fixed for a year. And if you recently switched to Flogas and are availing of a new customer discount, you’ll still get the same percentage discount – but it will now apply to a higher unit rate. But you'll still be saving overall.
Why are prices going up?
Flogas says the main reason for the hike is rising network or grid fees — which are the charges paid to maintain Ireland’s electricity network. So think of all the large pylons, wires and electrical cabinets and substations around the country that transport electricity into people's homes.
Around 30% of the price we pay for our electricity goes to Eirgrid and ESB Networks in grid fees to pay for the upkeep of the electricity network.
You won't see these charges on your bill as they’re incorporated into the unit rate as well as the standing charge that you pay.
But these costs have been increasing over the past few years, largely due to the investment needed to cope with a rapidly growing population as well as to try accommodate all the wind and solar energy we're now producing.
For example last year the energy regulator the CRU approved a hike in grid fees for the electricity network that worked out at just over €100 a year per household. Another hike is expected in August. And further increases of between €6 to €16 a year have been flagged for the following five years after that.
On top of this, wholesale costs remain high.
Even though wholesale energy prices have reduced hugely since the height of the energy crisis in 2002, they still remain well above normal levels. For example, wholesale electricity prices are around 80 to 90 per cent above the level they were at before the war in Ukraine broke out. It’s similar for gas. And it’s looking increasingly likely that they'll never return close to those pre-war levels.
Are more price increases coming?
Unfortunately, yes.
Because all suppliers face the same rising costs, price hikes from other energy companies are likely over the coming months, especially as we head into autumn.
However there are still good deals available to those who switch with discounts of up to 30% or more available to new customers for an entire year.
While we understand that any price change can be challenging for our customers, this announcement reflects a 21% increase in network charges introduced in October 2024, with further increases anticipated in October 2025. We will support affected customers through our Customer Service team as much as possible and have a range of options, including payment plans, Budget Plan and pre-payment meters. We would ask any Flogas customer who is facing financial pressure around their energy bills to contact us.
Sean O’Loughlin, Managing Director, Flogas Energy
Switch and save
If you’re looking to reduce your energy bills, remember that you can still save big money by switching supplier, which is the quickest and easiest way to offset any price hikes.
All the main suppliers are offering big discounts, of up to 30% or more for an entire year, to new customers — meaning you could save hundreds on your bills in just minutes.
Head over to our energy comparison page to review the options available to you.
Whether you’re looking to compare electricity, gas, or dual fuel deals, bonkers.ie has got you covered.
In the meantime, to help you cope with high energy costs, here are 16 ways to use less electricity and save money.
And if you're struggling to pay your energy bills, here are a range of supports that are available.
