Are lower bills on the horizon? - WLR FM
Wholesale prices for electricity have been falling since they peaked last year, following the Russian invasion of Ukraine. Despite this, bills for households have not been decreasing.
Daragh Cassidy, Head of Communications at bonkers.ie, appeared on WLR FM to explain why this is, and what consumers can expect going forward.
Listen to the interview above or look at the main points discussed below.
Main points from the interview:
- Irish consumers should hopefully be able to expect a small decrease in their energy bills over the next few months. Daragh forecasts a reduction of around 10% to 20%.
- However, for energy bills to return to pre-Covid levels, they would need to fall by over 50%. And even then, in 2020, Ireland had the third most expensive electricity in the EU.
- Wholesale costs are still much higher than they were before the pandemic, reducing the prospects of prices returning to ‘normal’ levels.
- Due to the summer weather, some people may receive lower bills as their consumption is lower.This may be because they go away on holidays or because they do not need to put their heating on.
- The €200 electricity credits given out by the government have ceased, leaving people with higher electricity bills.
- The government’s upcoming budget will take place on the 10th of October. Daragh is hopeful that a new wave of credits will be announced for the winter, albeit at a lower level than before.
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