Consumer energy crisis - The Tonight Show
Founder and Group CEO of bonkers.ie David Kerr appeared on The Tonight Show on Virgin Media One to discuss the current energy crisis facing consumers, as well as the very real threat of skyrocketing winter energy bills.
Here’s an outline of what was discussed in the interview.
What’s happening in the energy market?
Wholesale prices of gas and electricity have skyrocketed, with the price of gas having increased by over 200% in recent months.
Energy suppliers have been hiking prices since the start of the year, with some suppliers increasing prices four times. This is unprecedented.
The cost of electricity and gas for our homes this winter is the highest it’s ever been for energy customers.
What can energy customers expect this winter?
In terms of the standard price of gas and electricity, it’s sadly only bad news. For both gas and electricity combined, the standard price will increase by around €500-600 per household per year for the average household. This is just compared to last year.
There is still some good news. There are still discounts on offer, so if you haven’t switched energy supplier in over a year, you can mitigate the increases. By switching to this year’s best discount, you can go back to standard tariffs from last year.
When will people notice the price increases?
As we’ve just come out of the summer months, people won’t have really noticed these price increases yet. Our first winter bill is on the way though, and with the clocks about to change, we’ll have the lights on earlier and later. This means we’re going to consume more electricity and burn more gas to heat our homes.
The bills will come in from November, so people can still act today and switch supplier to offset the price increases before then.
What can the Government do to reduce energy prices?
One option is for the Government to reduce VAT, which is what the Spanish government has done. They could also reduce the carbon tax and PSO levy. The current VAT rate for residential electricity and gas is 13.5%. In the UK it’s only 5% for domestic energy.
There’s also the winter fuel allowance in place. The winter fuel allowance is a means-tested payment under the National Fuel Scheme. Those who qualify receive a weekly payment of €28 from the Department of Social Protection.
For over 70s the Department of Social Protection also gives out the free electricity allowance. This is a €35 monthly supplement to help people with their electricity bills.
What about the possibility of maximum price orders?
There are maximum price orders in place in the UK and there have been huge repercussions recently. As a result, there have been job losses, energy companies have gone out of business and millions of people are without an electricity and gas supplier.
Even though the intent is good, the fallout is significant. The cap that’s placed is very damaging.
Switch and save today
Are you worried about your energy bills rising this winter? You can easily compare and switch to a cheaper supplier on bonkers.ie.
It’s quick and easy to switch and can be done in just a few clicks. Use our energy comparison tool to compare the best deals today across all 14 energy suppliers nationwide.
Take a look at our guide on the most common questions we get asked about the switching process to make the process easier.
If you’re looking for more information on why energy prices are increasing, have a read of our recent blog post on the topic.