When will energy discounts reemerge? - Newstalk
David Kerr, founder and CEO of bonkers.ie, appeared on Newstalk to discuss why cheaper bills and discounts haven't returned, and what consumers can expect in the coming months.
Listen to the interview above or look at the main points discussed below.
Main points from the interview:
- Many people are beginning to ask why lower wholesale costs for energy are not translating into lower bills for consumers.
- The reasons for this not happening are myriad and complex. For example, even though wholesale prices have fallen, costs are still up to three times higher than they were before the pandemic.
- Additionally, suppliers have engaged in hedging practices. This means that the price for energy remains stable, albeit higher. At the start of the energy crisis, it meant that consumers were insulated from the worst of the price spikes, but also means that prices will take longer to come down.
- Last year, we saw record levels of switching - over 20,000 people switched in a single month in 2022. However, due to the slashing of switching discounts, this number has dried up.
- About a year ago, there were discounts of up to 40% available. The people on those deals are now about to roll off their contract, and there are not the same levels of discount available currently. However, there is still money to be saved by switching. You can find out more about making the switch in this Quickstart guide.
- While the future is unclear, David is hopeful that we may see some discounts and bill reductions in the coming months.
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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.