Electric Ireland and Bord Gáis Energy increase prices - East Coast FM
Consumers have been faced with a considerable rise in energy prices since the beginning of the year, with Electric Ireland and Bord Gáis Energy having both increased their prices significantly in the last number of days.
Our Head of Communications at bonkers.ie, Daragh Cassidy, joined Declan Meehan on East Coast FM to discuss the recent price increases, the reasons behind them, and how to switch and save on your energy bills.
Here’s an outline of the main questions answered by Daragh in the interview.
Do all energy suppliers increase their prices at the same time?
They tend to, unfortunately. When one supplier announces a price increase the other suppliers tend to follow quite quickly.
We’ve seen a huge number of price increases this year, with some suppliers even raising their prices twice so far.
Electric Ireland just announced a price increase, but this was its first price increase in almost a year. Bord Gáis Energy also just announced a price increase, which is their second electricity price increase this year.
Why is this happening?
There are a number of reasons for the energy price hikes.
- The biggest reason is that the price of wholesale fossil fuels, such as coal, gas and oil, has skyrocketed over the past few months as the world economy has opened back up. 60% of our energy comes from the burning of these fossil fuels.
- Some power plants have been out of action in recent months. Power Plants often go out of action for various reasons, such as for maintenance. However, there’s been a few more out of action than there usually would be.
- In April and May, there was less wind output than we would have expected. Renewable energy isn’t predictable or reliable, which impacts things as well.
To put it into perspective, this time last year, a megawatt of electricity on the wholesale market was costing suppliers around €30-40. At one stage over the past few weeks, it went up to about €100, so it’s almost trebled.
Consumers will also see the effect of this when purchasing petrol and diesel with the increase in oil prices.
How expensive is energy here compared to other EU countries?
We’re the fourth most expensive for electricity in the EU. Even if you look at other countries outside the EU, such as Switzerland, the UK, Iceland and Norway, energy in Ireland is still more expensive.
We’re about the seventh or eighth most expensive EU country for gas, which is far closer to the EU average.
If you look at the net price of electricity even before tax is added on, we’re the most expensive by a long shot, so we’re definitely out of kilter with a lot of other EU countries.
Switch and save!
Are you worried about the increasing cost of energy? 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 on bonkers.ie in the space of a few minutes. Use our energy comparison tool to compare the best deals today across all 13 energy suppliers nationwide. At the moment, someone who switches could save between €400 to €500 euro a year on their energy bills.
Most energy contracts last one year, but some can last two. Even if you are in contract and worried about breaking it, you’ll usually just be charged an exit fee of €50 per fuel.
If you’re looking for more information on why energy prices are increasing, take a look at our recent blog post on the topic. If you’re seeking advice when it comes to switching, have a look at our guide on 7 things to consider when switching energy supplier.
Remember there are things you can do around the home to help reduce your energy bills such as using LED light bulbs. Here’s a list of 15 ways to use less electricity and save money.