Bord Gáis Energy is to increase the cost of both electricity and gas by around 10 per cent, with some dual fuel customers likely to see their annual bills rise by more than €300.
The State’s largest supplier of gas is increasing the unit rate for gas by 10.6 per cent and its daily standing charge by 7 per cent. This will see the typical gas bill go up by 9.3 per cent or €140 a year based on average usage, according to the supplier.
Bord Gáis is also hiking the unit rate of its electricity by 9.1 per cent and its daily standing charge by 7.2 per cent, a move which will see the typical electricity bill will go up by 8.8 per cent or around €177 a year, based on average usage.
The move will significantly increase heating bills for around 300,000 households and will take effect from October 9th.
The company said the increases “reflect sustained increases in the cost of supplying energy, including higher network charges, continued volatility in wholesale energy markets and broader inflationary pressures”.
According to Bord Gáis Energy, a typical dual fuel household bill will increase by 9.1 per cent or €26.42 per month. That amounts to an annual increase of €317.
The changes also reflect the reduction in the public service obligation (PSO) levy on electricity bills from October 1st, previously announced by the Commission for the Regulation of Utilities.
The company’s director of customer and commercial, Catherine Lonergan said she recognised that this announcement “will be unwelcome for customers and increasing prices is never a decision taken lightly”.
“Global conflicts resulting in higher wholesale gas costs, together with rising network charges, mean a price increase is now necessary,” she said.
Lonergan noted that it was Bord Gáis Energy’s first gas price increase in four years.
“We encourage anyone experiencing financial difficulty to contact us so we can work with them to find the most appropriate support, such as flexible payment arrangements or access to our Energy Support Fund,” Lonergan added.
“Bord Gáis Energy has around 300,000 gas customers and even more electricity customers, so this news will impact many households throughout the country,” Daragh Cassidy of bonkers.ie said.
“And while the hikes that have been announced may not seem exceptionally high, they’re coming on top of energy costs which are already at very high levels,” he continued.
Gas prices are already around 90 per cent higher than they were four or five years ago while electricity prices are around 70 per cent higher. “Any further hikes to energy costs, however moderate, will hit many households hard,” Cassidy said.
“Unfortunately, there are no easy solutions to high energy prices in the short to medium term,” he said. “While the ultimate goal is obviously to drastically reduce our reliance on fossil fuels and natural gas, this will take well over a decade, maybe two or three.
“And while bringing more renewable energy on to the grid is the correct course of action, building a modern grid which can properly accommodate, transport and then store this energy (for when the wind doesn’t blow or the sun isn’t shining) is difficult and expensive and will even add to bills in the short term.”
Cassidy pointed out that households struggling with high energy costs have options. “They can switch to a cheaper supplier, look at ways to use less energy around the home and, if they’re on a smart electricity tariff, they can move their energy use to times of the day when it’s less expensive.”
He also called on the Government to reduce the rate of VAT on energy bills further and to consider pausing another hike in the carbon tax.