Price cuts and the state of Irish electricity - Spirit Radio
The price for consumer electricity has been sky-high for an extended period, putting a real squeeze on household finances.
However, from the 1st of October, Pinergy will lower the price of its electricity, opening the door for further price cuts from major energy providers.
Daragh Cassidy, Head of Communications at bonkers.ie, appeared on Spirit Radio to discuss the news, as well as provide some insight into the state of electricity in Ireland as a whole.
Listen to the interview above or look at the main points discussed below.
Main points from the interview:
- It can be overwhelming to assess your household electricity, with lots of jargon such as standing charges, MPRNs and unit rates adding to confusion.
- However, as suppliers begin to cut their prices, it is well worth the effort to look into switching providers. This is particularly true if you are coming out of contract.
- While prices are falling, they are falling from a very high level, meaning that this winter is set to be another expensive one for Irish households.
- Yuno Energy is the latest entry to the Irish energy market, undercutting the competition and offering good value.
- Hedging and high wholesale prices have kept Irish electricity prices high. However, as these contracts roll over, and wholesale prices ease slightly, we can expect to see reductions in household bills by maybe 10% to 20% in the coming weeks and months.
- However, for prices to return to previous levels, we would need to see decreases of around 60%, and Irish electricity remains some of the most expensive in Europe.
- Irish electricity is expensive for a myriad of reasons. Firstly, we do not have a nuclear generation, which can provide cheap power.
- Secondly, Ireland has a very dispersed population, with lots of one off properties. This increases grid costs, making it more expensive than urban areas where a single cable can power hundreds of homes.
- Additionally, due to being an island, Ireland has to import a lot of its gas, again increasing the cost of supply. Ireland is also poorly interconnected, meaning that electricity cannot easily be bought more cheaply from the continent.
- Irish electricity costs on average around 47 cents per kilowatt, far higher than the EU average of 26 cent.
- The Celtic Interconnector between Ireland and France will allow for electricity to flow between the two countries in four years or so, which could potentially lower prices.
- The cost of renewable energy is not going to necessarily lead to much lower prices, due to maintenance costs and government guaranteed prices.
- So, while prices are going to stay above historical levels, there will be some price reductions, and it is well worth switching providers to avail of discounts.
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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.