The average electricity bill and gas bill is to increase by 27 per cent and 39 per cent respectively from next month, Bord Gáis Energy has confirmed.
The increases come amid a time when the cost of living is soaring and further pressures on the price and availability of food and energy are being exacerbated by Russia’s invasion of Ukraine.
The increases will add around €350 a year to the average household’s annual gas bill and €340 to the average annual electricity bill.
They come on the back of price hikes that have already added around €540 to customers’ gas and electricity bills since the autumn of 2020.
It is the first price rise announcement from any energy supplier this year, and more suppliers are set to follow.
Bord Gáis Energy, which raised electricity prices three times last year and gas prices twice, pointed to high global wholesale energy costs and market volatility that is “expected to continue for some time”.
It said its winter price pledge, which protected customers over the colder winter period, “is ending”. The changes will take effect from April 15th.
A spokesman for price comparison website bonkers.ie described the outlook for consumers as “bleak”, adding: “The size and scale of the increase is unprecedented.”
He said energy price increases of this size would “invariably have huge knock-on effects” in other sectors.
“We use gas to produce most fertiliser, for example, and there are now fears of a huge increase in food price inflation over the coming weeks.”
Difficulties
Bord Gáis Energy said it would put in place “additional supports and services to help” in recognition of the fact “that some customers will experience difficulties in managing their bills”.
“Working in partnership with the Money Advice and Budgeting Service (MABS) and other charities, Bord Gáis Energy is establishing an energy support fund and will provide tailored advice to help customers,” it said.
Bord Gáis Energy managing director Dave Kirwan continued: "We know that today's announcement is not welcome news. As part of Centrica plc, and with decades of local experience, we will navigate through these unprecedented times with our customers.
“However, there have been continued increases in wholesale energy costs over the past two years, particularly in the past 12 months. This, together with the expectation that costs will remain both high and volatile for some time, means we are forced to increase our prices.
“We know that each customer’s circumstances are different, and we are determined to help those who need it most. That is why we are announcing an energy support fund of €1.25 million in addition to the services we already have in place.”
Supports
The range of factors driving the rising cost of wholesale energy include the persistence of high demand on gas worldwide, reduced supplies, low storage volumes, geo-political issues, and late winter conditions.
The spokesman for bonkers.ie encouraged consumers to look for supports in the event they are struggling with bills.
“In terms of supports for those worried about rising prices, people should check if they qualify for any social welfare payments. These include the winter fuel allowance or the free electricity allowance, which is paid as part of the Household Benefits Package to all over-70s and some people younger than this.
“Most suppliers also have support schemes and flexible repayment plan options to help customers who are struggling.
“The Society of St Vincent de Paul and MABS can also provide help and advice and in some cases financial support. And of course I’d encourage everyone to switch supplier to ensure they’re on the best deal.”
The announcement includes a 43 per cent increase in the gas unit rate and standing charge, which equates to 39 per cent increase on the average bill.
It also includes a 29 per cent increase in electricity unit rate and standing charge, amounting to a 27 per cent increase on the average bill.
The figures are based on a typical annual consumption of 4,200 kWh for electricity and 11,000 kWh for gas and Bord Gáis Energy standard tariffs.
