Bord Gáis Energy increases prices once again - Drivetime
It should come as no surprise that another gas and electricity supplier has announced a price increase in recent days. Bord Gáis Energy (BGE) is the latest supplier set to increase its energy prices, with the price of gas going up by 12% and electricity by 10%.
Our Head of Communications at bonkers.ie, Daragh Cassidy, appeared on RTE’s Drivetime to discuss the impact of BGE’s price increase on bills, the reasons behind recent energy price hikes and how households can save on their winter bills.
Here’s an outline of the main points discussed by Daragh in the interview.
How much are prices going to go up for Bord Gáis Energy customers?
There’s been no good news for energy customers throughout all of 2021. We’ve seen so many price hike announcements and this increase from Bord Gáis adds another.
This increase will add around €100 a year to the average customer’s gas bill and around €120-125 a year to the average customer’s electricity bill.
Bord Gáis has already increased gas prices twice and electricity prices three times this year. When you take all of that into account, you’re looking at a hit of an additional €340 on your electricity bill and €200 on your gas. This is quite steep.
A spate of increases
There are 14 energy suppliers in the market at the moment and some of the other suppliers have announced price increases four times this year. This could add around €700-800 to people's bills, so it’s a crazy time for customers at the moment.
Why are prices increasing so much?
There are three main reasons why prices are increasing.
- Fossil fuels - Gas, in particular, has skyrocketed over the past few months, which feeds into electricity prices as well since around 40-50% of our electricity is still generated from burning gas.
- Renewable energy - We’ve had a calm summer and it hasn’t been as windy as it usually would be. This has reduced the supply of renewable energy on the grid, which hasn’t helped the situation.
- Power plants out of action - at the moment we also have two large gas-fired power plants out of action. This is putting pressure on the supply into the grid.
Prices are increasing so much due to a mix of these several things coming together.
Is it worthwhile switching energy supplier to save?
Listeners might be wondering what the point of shopping around is as all suppliers are increasing prices. However, people need to remember that companies are still competing for new business.
There are 14 energy suppliers nationwide and to attract customers they offer huge discounts to new customers. Often customers can avail of discounts of 30-40% off standard rates, which is a significant amount.
At the moment those looking to switch could save €500 a year. This is still €500 savings off a bigger bill, but it’s badly needed because people will get a big shock when they see their winter bills in a few months.
Switch and save today
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 nationwide and see what you could save today.
Before switching, you may want to take a look at some of the following:
- Learn about what you need to switch energy suppliers in this guide.
- Here is a list of some of the most frequently asked questions about the energy switching process.
- Have a read of our guide on 7 things to consider when switching energy supplier to know what to look out for when switching.
Get in touch
If you have any questions about Bord Gáis Energy’s price increase or switching supplier, let us know and we’d be happy to help!