Making Cents: Lower electricity costs now but winter on the way

When the weather broke over the last 10 days, social media was full of references to people considering the

strangest of activities: turning the heating on.

The sun returned over the bank holiday weekend but the cooler, rainy stretch was a reminder that autumn is on its way.

People revelled in the long, hot days this summer but we also benefited from reduced energy bills as a result. That will change in the coming weeks and months and it may be only then the consumers truly notice the price increases that suppliers have been announcing for months.

Daragh Cassidy, head of communications at price comparison website bonkers.ie described last Wednesday, August 1, as D-Day, when the increases began to actually kick in.

Electric Ireland, Energia, Flogas, Panda Power and Pinergy all increased their prices on Wednesday with PrePayPower and Bord Gáis following on Friday and yesterday. Increases varied between 5.8% and 9.38% for electricity and 4.7% to 12.8% for gas.

“Ireland imports a huge amount of its energy from abroad,” Mr Cassidy said.

As a result, Ireland remains highly susceptible to increases in the wholesale price of gas and energy on international markets and unfortunately these prices have increased significantly over the past year.

There are two ways to reduce the bills you will face later on in the year — reduce the amount of energy you use or reduce how much you pay for it. The Sustainable Energy Authority of Ireland (SEAI) reports that home heating accounts for about two thirds of average annual household energy bills.

They offer a range of grants for work that can make your home more energy efficient, from home heating upgrades to wall and roof insulation. On average, a home loses 20% to 30% of its heat through the walls, rising even further if they are not insulated. Up to 30% can be lost through a poorly insulated attic.

Getting the grant process started now will give you loads of time to complete the work before the cold weather really starts to bite. All homeowners, including landlords, whose homes were built and occupied before 2006 can apply, and applications can be made online.

There is an application grant available on www.seai.ie and, if everything is in order, you can be approved within minutes.

The other main big piece of advice from the SEAI regarding heating is to keep an eye on your thermostat. Everyone likes to feel cosy at home but that doesn’t have to mean hot enough to wear a T-shirt in the depths of winter.

Keeping the thermostat too high is a major contributor to costs. The SEAI calculates that lowering your thermostat from 21c to 20c could save around €150 in a typical family home.

People mistakenly think that setting the thermostat higher will cause the house to heat up more quickly but that is a fallacy. The temperature will rise at the same rate.

The other way to tackle costs is through a switch. Each energy supplier charges a different standard rate so the impact of, for example, a 5% price increase from one supplier may not have the same impact on a customer’s bill as a 5% price increase from another.

Customers who are on introductory rates may also be impacted differently.

Therefore customers will have to do a little research to see if a move will benefit them and which supplier is the best fit for them. Price comparison sites like bonkers.ie and switcher.ie make it simple for people and Mr Cassidy strongly recommends everyone to consider a switch.

“Energy suppliers usually save their best rates for brand-new customers, which are heavily discounted compared to the standard rates a longer-term customer is charged,” he said.

However, these deals usually expire after 12 months. At this stage, if customers don’t switch, their supplier will revert their plan to standard pricing and they’ll pay more for the exact same service. So by switching over to a new deal with a new supplier every year, customers can save over €300 on their energy bills.

Deal of the Week

With less than a month to go until the schools return, Irish Rail is encouraging families to leave the car at home and take the train for those last few days out. The company is promoting child and adult fares to and from Dublin.

From Cork you can head to Dublin , or vice versa, for € 19.99 each way with children’s tickets available for €15.50, or go on to Fota/Cobh for an extra €3 per adult (no extra for children).

Children can also travel between Tralee/Killarney and Dublin for €15.50, with adults charged €22.99.

Closer to the capital, there are fares from Dublin to Rosslare for €4.99 for children and adults. Fares between Dublin

and Belfast are available from €10 each way per child, or €17.99 per adult.

Online reservations can be made up to 90 days in advance. There is no cancellation or refunds available on

low fares. Online terms and conditions apply.

■ If there are any consumer issues that you’d like Gráinne to address or if you have problems that Gráinne could help with, she can be contacted at [e-mail]