How will Bord Gáis Energy’s price increase impact me? - Midlands 103FM
Head of Communications at bonkers.ie, Daragh Cassidy, discusses Bord Gáis Energy’s recent energy price hike announcement on Midlands 103FM. He speaks about whether this will influence other energy suppliers' prices and how to save money on your energy bills.
Bord Gáis Energy shock price hike announcement
As one of Ireland’s leading energy suppliers, Bord Gáis Energy’s, staggeringly high price increase announcement shocked Irish consumers.
This means that for the average person, their annual gas and electricity bills will have an extra €380- €390 added on to both of them.
When you add that to the fact that most people’s energy bills increased by €550 last year after a series of price hike announcements from energy suppliers, people’s energy bills are really hurting their pockets.
Will other energy suppliers increase their prices too?
Yes, they will. Unfortunately, it's almost guaranteed that the other suppliers will come out in a number of days or weeks with price hikes.
Usually, it is the smaller suppliers that come out with their price increases first, so it is interesting that Bord Gáis, one of the biggest suppliers made this announcement first.
Do I have to accept Bord Gáis Energy’s price increases?
Yes, you do. In Ireland, there are no fixed tariffs for energy deals at the moment. All energy tariffs are variable, meaning they can fluctuate with the market.
Therefore, the cost of your energy bills are legally able to go up and down, however, this is why you must avail of the discounts offered by Bord Gáis, and that of other suppliers, given to those who switch to their deals.
However, if you are still in contract and do not want to stay in it, you can leave but you will be subject to cancellation charges.
For instance, you will be charged €50 per fuel, and €100 for a dual fuel deal cancellation. You can learn more about cancelling your energy deal in this blog.
Did the war in Ukraine cause Bord Gáis to raise their prices?
No, it didn’t. As I already mentioned, last year saw a series of price increase announcements from energy suppliers nationwide. This indicates that there was already an energy price crisis affecting the market.
For instance, the cost of gas had increased for a number of reasons, such as:
- The lack of wind energy cultivated last year
- The pandemic
- The costs associated with the transition to Green energy
Bord Gáis’ rise in prices was a reflection of these factors. The impact of the conflict between Russia and Ukraine on the energy market has yet to be factored in.
Will the war in Ukraine have an impact on our energy prices?
Yes, it is possible. Although Ireland is not directly reliant on Russia for gas, other European countries are. This means if a country like Germany is shut off from Russian gas, then it will look for other suppliers.
If these countries look for gas from the UK or Norway, the two countries that supply a large proportion of our gas, then gas prices will increase as the demand for gas rises.
As it stands, Europe receives 40% of its gas from Russia, while Ireland gets 70-75% of our gas from the UK, who in turn import gas from Norway.
How do you find the best energy deal on the market?
The energy comparison service on bonkers.ie will allow you to compare the best-discounted rates available for gas and electricity deals in Ireland.
In order to save money in these trying times, you need to be switching to a different energy supplier every year, or as soon as your current contract ends and you're bumped on to the standard rate.
Switching suppliers is quick and easy on bonkers.ie, you can read all about the switching process in this guide.
But don’t stop there, bonkers.ie offers a range of different comparison services across broadband, banking, and insurance products. Use these free tools today to help lower the cost of your household bills.