Winter energy price freezes - Midlands 103
Recent electricity price increases from a handful of energy suppliers have meant some customers will be paying more for their energy, not to mention a massive increase to the PSO levy acting as the cherry on top.
However, four suppliers have so far committed to freezing their energy prices for customers coming into the winter months, a move that will surely help to allay the fears of already cash-strapped consumers.
Our Head of Communications at bonkers.ie, Daragh Cassidy spoke to Will on Midlands 103 to discuss the state of the energy market and where consumers can find the best value.
Here’s an outline of the main points discussed by Daragh in the interview.
What is the energy market like at the moment?
The energy market at the moment is pretty competitive, with over a dozen energy suppliers.
There are a few newer entrants, such as Glow Power and Iberdrola that people may not be familiar with.
Really there’s never been more choice for people if they’re looking for better value.
Winter price freezes
When bigger players in the market announce a price freeze, it can put a significant amount of pressure on other suppliers.
SSE Airtricity is committing not to increase its prices until the spring. They haven’t given a date yet, but it will likely be until March. We’ve seen suppliers do this in previous years, which is very good.
Other suppliers have also announced winter price freezes, such as Bord Gáis Energy on its gas and electricity. Electric Ireland also announced a price freeze on its gas for customers. It did announce a price increase of its electricity though of 3.4%.
Some suppliers are increasing their electricity prices due to the associated costs of managing the electricity network.
Usually, when one big player announces a price increase, the others follow but this time has been a bit different. All of the supplies are taking a slightly different approach.
The PSO levy and network charges
The PSO levy was increased quite significantly by over €50 in the latest budget.
However, there are other costs associated with managing the electrical grid. These network charges are being increased by the CRU and are being passed onto the supplier by EirGrid.
Electric Ireland has opted to increase electricity prices by 3.4% to offset these charges but could have absorbed them instead.
The increasing carbon tax
The carbon tax has also increased in the latest budget.
The carbon tax will rise from €26 a tonne to €33.50. The implementation of a higher carbon tax on petrol and diesel was immediate, but the increase in home heating fuels was delayed until May.
This means that the average household will be paying around €80 a year on the carbon tax. There are plans to increase the carbon tax to €100 per tonne by 2030.
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Use our energy comparison tool to compare the best deals today across all 13 energy suppliers nationwide.
You only need a few things to switch, including:
- Your MPRN number for electricity or your GPRN number for gas
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- A rough estimate of how much energy you use
- A few personal details
By switching today, you could save over €400 annually on your household energy bills.
Before switching, you might want to have a look at our guide on 7 things to consider when switching energy supplier.
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