The state of the Irish energy market - The Last Word
From the changing landscape of the wholesale market for energy, to the increase in the use of EVs, solar panels and smart meters by the Irish public, the energy market in Ireland is set to experience transformations over the coming months and years.
David Kerr, founder and CEO of bonkers.ie, appeared on The Last Word to discuss where the market for gas and electricity currently stands, and what might be on the horizon.
Listen to the interview above or look at the main points discussed below.
Main points from the interview:
- Wholesale prices for electricity are still triple the level they were before the Covid pandemic, but down from the record highs experienced last year.
- Due to the structure of the European energy market, the price for electricity generated by renewable energy is the same as the price for gas generated electricity, leading to massive profits for some energy generators.
- There is the potential for ‘bill shock’ over the coming months, as people who received heavy discounts by switching providers last year roll off their contracts. There will undoubtedly be pressure put on the Government to reintroduce the €200 electricity support in some form, says David.
- More people are installing solar panels to generate electricity for their home, some of which they can sell back to the grid. Time of use tariffs will therefore become more important, particularly as more people opt for electric vehicles.
- An electric car can use up to 80% of a standard household's electricity consumption in a year, so it is important to sign up to a tariff that makes that as economical as possible. You can learn more about EVs in our podcast.
- Listeners asked about electricity suppliers claiming to be 100% green. David explains that this is a contentious issue, because even if the electricity a supplier produces is from solely renewable sources, it is fed into the grid before it reaches the customer. Therefore, there is no guarantee that the electricity you use is 100% green.
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