When will electricity prices fall? - Today with Claire Byrne
Wholesale energy prices have been tumbling in recent months, down from the record highs experienced last year. But why is this not translating into cheaper bills for consumers? And what savings can you make on your bills?
Daragh Cassidy, Head of Communications at bonkers.ie, appeared on RTÉ’s Today with Claire Byrne, to discuss these questions.
Listen to the interview above or look at the main points discussed below.
Main points from the interview:
- Due to hedging, electricity suppliers are locked into paying above market prices for energy, resulting in higher customer bills.
- Hedging is the process of buying ahead, to cushion against wild fluctuations in prices. Last winter, this shielded people from the worst of the price increases, but this also means suppliers are locked into these contracts for now, even as prices fall.
- Daragh cautioned that higher prices for gas and electricity are not going away anytime soon, but there may be a small price decrease of 10-20% by the end of the year.
- Even though wholesale prices have fallen, they are many times higher than prices experienced before 2021.
- Irish electricity prices, even before the crisis, were way above the European average. Daragh points out that the cost of producing electricity in Ireland is high, due to the lack of domestic fossil fuels and a dispersed population, leading to high grid costs.
- It is important to remember that there is still money to be saved on electricity by switching. Discounts of 10% or so are still available, which could lead to savings of hundreds of euro over a year.
- Unlike switching your mortgage which can be a lengthy and time-consuming process, switching energy, insurance or broadband supplier is incredibly simple and easy to do.
- Daragh also recommends evaluating the streaming services you have, and the suitability of your broadband package as easy ways to cut down costs.
Switch to a cheaper energy deal today
It’s quick and easy to compare deals and switch gas and electricity providers on bonkers.ie. Head over to our free energy comparison service to compare the best deals across all energy suppliers nationwide in just a few clicks!
If you’re seeking advice when it comes to switching supplier, make sure you check out our energy Quickstart Guide here. Our guide will equip you with all you need to know to make the switch and cut the cost of your gas and electricity bills.