Irish households pay €1000 more than EU average for energy - Newstalk
But why are prices so high? David Kerr, founder and CEO of bonkers.ie, appeared on Newstalk to discuss.
Listen to the interview above or look at the main points discussed below.
Main points from the interview:
- There are many reasons why electricity is so expensive in Ireland. One major reason is that Ireland is on the edge of Europe, and is the last stop on gas pipelines. This means that Irish gas prices factor in charges across the whole pipeline network.
- Network charges make up around a third of the average bill, and fuel costs make up around half. The government charges a 9% rate on top of this.
- Then, suppliers need to earn a profit margin to stay in business, highlighted by four providers leaving the market during the energy crisis.
- Bills have remained perpetually high since the energy crisis, having essentially doubled between 2021 and 2022. There have yet to be any decreases as of yet.
- Wholesale prices for electricity, while lower than they were last year, are still triple what they were in 2020.
- Hedging has meant that prices have remained stubbornly high, but as those contracts end, there should be room for price decreases down the line.
- Yuno Energy is the latest supplier to enter the Irish market, from the people behind PrepayPower.
- Yuno Energy is a bill-paid provider, offering the cheapest rates on the market with a 38 cent unit rate.
- They are leaning into technology with their offering, being entirely app-based. This will allow customers to make payments and track their usage.
- Switching discounts came to a halt at the end of last year, so Yuno Energy’s entry to the market is welcome and will hopefully trigger the return of switching discounts.
- For those who regularly drive an EV, and charge their car at least twice a week, it is wise to consider a smart meter tariff, where super-cheap rates can be availed of between 2am and 4am.
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