The outlook for energy customers across Ireland is “bleak,” according to bonkers.ie, as a new price hike announced by Bord Gáis Energy marks the first of the year.
Last year saw more than 35 price hikes from energy suppliers and more are “certain to follow” this year, a spokesman for the product comparison and switching site said.
The increase from Bord Gáis, which said the average electricity bill will rise by 27 per cent and the average gas bill by 39 per cent from April 15th, is projected to add around €350 a year to the average household’s annual gas bill and €340 to the average annual electricity bill.
This comes after previous price hikes have already added around €540 to gas and electricity bills since the autumn of 2020. Last year, Bord Gáis raised electricity prices three times and gas prices twice.
The Government said the price hike was “a matter of strong concern” after the Cabinet met virtually to consider the Ukraine crisis and associated challenges for Ireland and Europe’s economies, particularly rising energy costs.
The Government said Russia’s invasion of Ukraine had led to “unprecedented” levels of price increases and volatility in energy markets, owed to increases in wholesale prices and supply constraints in the international gas and oil markets.
Support measures
It may not be possible for the Government to shield consumers from the full impact of increased energy costs, it said in a statement following the meeting.
It confirmed it had already raised the possibility of lowering VAT on fuel below its current rate of 13.5 per cent with the European Commission and said it will keep energy supply and prices “under close and active review and examine what other measures may be possible to support consumers and businesses.”
At Tuesday’s virtual Cabinet meeting, the Government also confirmed an emergency support scheme agreed earlier for licensed road hauliers, who have been hit by rising fuel prices, at an estimated cost of €18 million.
It reiterated that a €125 increase in the fuel allowance will be paid to 372,000 households this week, while a €200 electricity credit will also be paid shortly.
Bonkers.ie advised those concerned about rising prices to check if they qualify for any social welfare payments such as the fuel allowance or free electricity allowance.
“Most suppliers also have support schemes and flexible repayment plan options to help customers who are struggling... And of course I’d encourage everyone to switch supplier to ensure they’re on the best deal,” said spokesman Daragh Cassidy.
The Society of St Vincent de Paul and MABS can also provide help and advice, and in some cases financial support, he added.
