Sunday 23 April 2017

'Switch power supplier' warning as prices set to soar

The onset of colder weather means consumers should lock into deals now. Thinkstock
The onset of colder weather means consumers should lock into deals now. Thinkstock
Charlie Weston

Charlie Weston

Householders have been warned to act now to avoid paying more for electricity and gas next year, when prices are expected to increase.

The onset of colder weather means consumers should lock into deals now, experts said.

Prices were cut several times in the last 12 months, resulting in a price war, according to Simon Moynihan of price comparison site Bonkers.

But higher oil prices and wholesale gas prices are set to feed into higher energy costs for households.

"There has been a price war, and the savings available to customers who switch from standard price plans are now the highest they've ever been," Mr Moynihan said.

He added that an average household paying standard electricity rates can save €226 over the next 12 months just by switching provider. An average household paying standard gas rates can save €161 by switching supplier.

"Wholesale energy prices are going up again after years of falling, and you can be sure energy companies will pass that on to us," Mr Moynihan said.

Recent figures show Irish wholesale gas prices increased 8pc on average in November compared to last year.

And the wholesale energy market report published by Vayu Energy found the average wholesale gas price up 15pc in November compared to October.

Increased demand and limited liquefied natural gas supply during October and November led to the higher prices.

Mr Moynihan said this should be a wake-up call to those who have not switched energy provider. Last year 23,925 households switched electricity suppliers in December.

Irish Independent

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