| 15.3°C Dublin

Households face forking out an extra €200 a year as Bord Gáis hikes prices

Close

Stock image

Stock image

Stock image

Bord Gáis Energy has announced an increase in its electricity and gas prices which could see customers paying more than €200 extra this year on their annual bill.

This is the third price increase in electricity this year and the second for gas in the past two years.

The company said the rises came as a result of the “all-time high” cost of energy.

Customers will now be paying on average €8.16 per month more on a typical gas bill and €10.26 extra on the average electricity bill.

Dave Kirwan, managing director of Bord Gáis Energy, said: “We are experiencing an extremely uncertain energy market right now and we know our customers are concerned about that.

“We regret that we have to pass through a price increase at this time, but we have taken steps to protect our customers against further movement during the colder winter months ahead.

"Today we confirmed a unique guarantee to hold these prices until spring 2022.”

The increases will take effect from October 24.

Dermot Jewell, policy and council adviser to the Consumers Association of Ireland, said: “Every provider, with very few exceptions, is increasing prices.

"This will cause severe hardship to many households and that’s why all eyes are on the Budget, to see what can be done to help consumers.

Daily Digest Newsletter

Get ahead of the day with the morning headlines at 7.30am and Fionnán Sheahan's exclusive take on the day's news every afternoon, with our free daily newsletter.

This field is required

“This will place pressure on all households, whether you’re in a single-person household or in a family home, the cost of your energy – the price of home heating and lighting will increase. This winter will be a big challenge with rent, food and other costs going up.

“The focus is on the Budget. The Government stated they’d be looking very closely at the fuel allowance – that needs to be looked at.

"And there needs to be an increase in the State pension and social welfare pay, a buffer to allow people to meet the costs,” he said.

Mr Jewell added that where consumers could usually shop around, that would not be the option this year due to volatility in the market.

The increases represent a 12pc rise in the gas unit rate and standing charge, which equates to a 10.98pc upturn on the average bill.

It also amounts to a 10pc rise in the electricity unit rate and standing charge, equating to a 9.54pc rise on the average bill.

Bord Gáis Energy said global energy costs and particularly global gas costs had hit “all-time highs due to a combination of restricted supply levels, higher carbon prices, and market volatility”.

The company added that while the current price highs and volatility were expected to remain for some time, Bord Gáis Energy had confirmed it would pass on any savings and reductions to customers wherever and whenever it could.

The company said it had repeatedly demonstrated this commitment in 2020 and 2019 when it reduced gas prices.


Most Watched





Privacy