Bord Gáis to hike gas prices by 39% and electricity by 27%
Energy Set 27%, With Prices Gas For Bord Significantly Moving To A “bleak” Outlook With Gáis Industry Electricity Forward Will Rise By Predicting And Next Its 39% By Hike Figures Customers Month,
Bord Gáis will hike its prices significantly next month, with gas set to rise by 39% and electricity by 27%, with industry figures predicting a “bleak” outlook moving forward for energy customers.
After prices rose significantly in the past year, the cost of energy in homes with Bord Gáis is set to rise even further with the measures set to take effect from 15 April.
The company cited the persistent high demand for gas worldwide, reduced supplies, low storage volumes, geopolitical issues, and late winter conditions on driving the price rise.
Bord Gáis Energy’s managing director Dave Kirwan said the company knows 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,” Mr Kirwan said.
"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.”
The high cost of electricity and gas to power Irish homes is just one facet of the current cost of living pressures.
Russia’s invasion of Ukraine has also sent the cost of filling the car soaring, as the oil price surges.
In a bid to support people as they face high energy costs, all account holders in the country will receive €200 credit off their bills as part of a government scheme next month.
However, the government has now conceded the €200 credit "won't cushion the full blow" of the energy hikes.
Taoiseach Micheál Martin has said spiralling costs are "one of the prices now that we're paying because of this illegal and immoral war," adding that EU leaders are working together to come up with emergency interventions to help struggling households.
However, he warned that the Government will not be able to shield citizens entirely from the "shock" of soaring energy costs.
Speaking in Washington Mr Martin said: "The war is having its impact and it's a very, very tough impact on a lot of people, particularly people on low incomes, people whose bills have gone up enormously as a result of this."
He said EU leaders discussed temporary measures that could be adopted as a way of easing the pressure on households when they met in Versailles late last week.
Mr Martin said a "deeper analysis" will now be carried out on what supports emergency can be implemented across the EU.
Asked about the latest price hikes, Green Party leader Eamon Ryan said the Government was “aware of that coming” and said the State interventions announced to date will not fully protect people from these increases.
"We're very conscious, we were aware of that coming and that reality that the high international gas price particularly is going to cause real difficulty for us and for householders.
"That's why we increased social welfare provisions last October, it was already in train in that sort of timeframe.
"That's why we're seeing the next coming couple of weeks, a €200 credit coming from the Government, it won't cushion the full blow - that price increase is in the order of over €300 - so we can't cover the full cost. But that €200 credit will help cover some of it."
He said fuel allowance changes will also kick in next week. He added that this won't "cover the full burden, but it helps."
Mr Ryan said "further and other efficiency measures" will be looked at.
Mr Kirwan said his company is aware some customers will have difficulty with their bills and had put in place additional supports and services to help, including an energy support fund in partnership with the Money Advice and Budgeting Service (Mabs) and other charities.
Daragh Cassidy, head of communications from Bonkers.ie, said that the “size and scale of the increase is unprecedented”.
“It’s the first price hike announcement from any energy supplier this year,” Mr Cassidy said.
“Last year there were over 35. And more suppliers are certain to follow. The outlook is bleak for energy customers.
"The increase will add around €350 a year to the average household’s annual gas bill and €340 to the average annual electricity bill.
“This comes on the back of price hikes that have added around €540 to customers’ gas and electricity bills since the autumn of 2020.”
Mr Cassidy said energy hikes like this will have “huge knock-on effects in other sectors” and said there are fears of food price inflation in the coming weeks.
The Government has said that it will keep energy prices under "active review" but that it "cannot shield" the public from the effects of rising prices.
A statement issued today following an incorporeal Cabinet meeting said that the "significant retail price increases announced today by Bord Gáis Energy are a matter of strong concern to the Government, particularly the impact on low income households".
The statement that "while it may not be possible to shield consumers from the full impact of these increases", the Government "has already taken a number of significant actions to ease the impact of energy price increases" pointing to the €125 increase in the fuel allowance to be paid this week to 372,000 households, the increase in the fuel allowance by €5 per week in last October’s Budget, the cuts of 15 and 20 cents per litre in excise on petrol and diesel and the €200 electricity credit which is to be paid shortly.
"The Government will keep energy supply and prices under close and active review and examine what other measures may be possible to support consumers and businesses. The Government has already raised with the European Commission the possibility of lowering VAT on fuel below its current lower rate of 13.5%."