Energy price increases and carbon tax hike - RTE’s Morning Ireland
Eight energy suppliers are due to increase their prices this month. Our Head of Communications, Daragh Cassidy, chatted to Petula Martyn about the reasons for the price hikes.
He also chats about the carbon tax increase which is also due to come into effect next month on gas bills as well as what consumers can do to help save on their energy bills.
Here’s an outline of the main points discussed by Daragh in the interview.
Why are so many suppliers increasing their prices in April?
There are two main reasons for the sudden increase in the cost of electricity.
- As the economy reopens and recovers from the effects of the pandemic, the wholesale price of fossil fuels has increased, particularly the price of gas and coal. This in turn has a knock-on effect on consumer prices.
- The second biggest driver of the price of energy is the cost of building, operating and maintaining the country’s gas and electricity networks. The regulator has increased network charges in recent months and these charges make up 30% of consumer bills.
See our recent blog post to learn more about why electricity prices are increasing.
Carbon tax increase
In the last budget, it was announced that the carbon tax on fuel will increase from €26 per tonne to €33.50 per tonne. The implementation of this for natural gas and home heating oil was put on hold until May 2021.
However many environmental campaigners have called for the tax to be increased significantly and the Government has set a target of €100 per tonne by 2030. This means that unfortunately for energy consumers, there are likely more tax increases and additional costs on the way.
Can you still save by switching?
The good news is that you can still save money by switching electricity suppliers!
With 13 different energy suppliers to choose from in Ireland, there are lots of competitive offers for new customers.
There are great discounted rates on offer for those who switch and often you can save up to 30-40% on your bills. This equates to an approximate annual saving of between €400-500 for an average household in Ireland.
With bonkers.ie, you can compare gas and electricity prices and switch online to save money. Use our easy-to-use comparison tool to see what you can save today!
Other ways to save
If you’re looking for alternative ways to save money on your monthly electricity bills, it’s easy to do so by simply adjusting your everyday habits. With our 15 tips on how to use less electricity, you can save money and become more energy efficient!
You can further minimise your impact on the environment and save money by following these 12 ways to reduce your carbon footprint.
What are your thoughts?
What do you think about the carbon tax increase? Do you think it’s worth it to help make Ireland a more environmentally friendly country? We’d love to hear your thoughts!