CSO releases data on wholesale energy prices - Today with Claire Byrne
New figures from the CSO show that the price of wholesale electricity has tumbled over the past year.
Daragh Cassidy, Head of Communications at bonkers.ie, appeared on Today with Claire Byrne to discuss the data, and what it means for Irish households.
Listen to the interview above or look at the main points discussed below.
Main points from the interview:
- The CSO has released data on the wholesale price of electricity. The new figures show that the wholesale price has fallen over 70% since this time last year.
- The drop is attention grabbing, but it is worth noting that this drop comes from the peak of the energy crisis last year, as the impact of the Russian invasion of Ukraine shocked markets around the world.
- Even though wholesale prices have fallen, they are still 2 to 3 times higher than they were in 2020. This has been the reason why household bills haven’t fallen to the same extent.
- Hedging contracts by suppliers protected customers from the worst of the wholesale price increases last year. But those same contracts mean that any reductions are slower to be passed on to household bills.
- Ireland has a dispersed population, a gas reliant energy mix, and expensive clean energy compared to other European countries. This ultimately leads to above average bills for households.
- It is hoped that the government will keep the level of VAT at 9% for energy, and bring back some supports to help households cope with the high cost of energy over the winter.
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