The reasons behind the rising cost of energy on WLR FM
Three energy suppliers, Pinergy, Flogas, and Panda Power have all confirmed they'll be increasing the cost of their energy from June, and for the second time this year.
With more suppliers expected to announce similar increases in the coming days and weeks, consumers will inevitably be faced with more expensive bills.
Our Head of Communications at bonkers.ie, Daragh Cassidy joined Damien Tiernan on WLR FM to discuss the rising cost of energy and the value to be had by switching suppliers.
Here’s a breakdown of the main points discussed.
What suppliers are increasing prices?
Both Flogas and Panda Power are the most recent suppliers to announce an increase in their energy prices, effective from the end of June. This is the second time the suppliers have increased their prices this year.
Flogas will increase its gas prices by 8.9% and its electricity prices by a whopping 12.5%.
Panda Power will increase both its electricity and gas prices by 9.8%.
Why are prices increasing?
Energy prices are increasing for a number of reasons.
- The majority of electricity still comes from the burning of fossil fuels and the wholesale price of coal, gas and oil has increased significantly in recent months. The actual cost of fuel accounts for 40% of our energy bills.
- The costs associated with maintaining the country’s gas and electricity networks are on the rise, due to increases by the regulator. EirGrid and Gas Networks Ireland manage and maintain the country's electricity and gas networks. Energy suppliers must pay the charges for the upkeep of these networks, but these charges are ultimately being passed onto the consumer. These charges make up 30% of a home’s energy bill.
- There’s been a lack of wind output in the system over the past few weeks, as it hasn’t been as windy as was forecast. Renewable energy in general can be tough to forecast in advance.
Unfortunately, it doesn’t look like the price of energy is going down any time soon, and it’s likely more suppliers will raise their prices. However, you may still be able to save money on your bills!
Switch and save today!
Have you noticed a notable increase in your energy bills? While prices are on the rise, many suppliers offer great deals to new customers which you can avail of to offset increases.
You can easily compare and switch to a cheaper supplier on bonkers.ie. It’s quick and easy to switch and can all be done in a few clicks.
- Use our energy comparison tool to compare the best deals today across all 13 energy suppliers nationwide.
- If you’re looking for more information on the rising cost of energy, take a look at our blog on why energy prices are increasing.
- You can also read one of our energy guides on how to switch, such as our frequently asked questions about switching energy supplier.