Rising energy costs 'hugely frustrating' for 'hard-pressed consumers'

Flogas became the sixth utilty firm to hike up prices in the past fortnight, following SSE Airtricity, Pinergy, Glowpower, Energia and Panda Power.

Irish households hoping for fewer financial headaches when it comes to paying bills are out of luck with “hugely frustrating” rises in energy costs providing no respite.

That is according to consumer comparison website Bonkers.ie, which warned the sixth utility firm to hike its bills in recent weeks showed Ireland is “well and truly back in a period of rising energy prices”.

Flogas became the sixth firm to jack up costs in the past fortnight, following SSE Airtricity, Pinergy, Glowpower, Energia and Panda Power.

The firm said natural gas and electricity price changes will take effect from April 12.

There will be a 6.5% increase to the Flogas standard natural gas rate and standing charge, Flogas said.

The firm was at pains to point out that natural gas prices will still be lower than this time last year, due to a 10% price cut implemented last October.

That will be of little comfort to hard-pressed households reeling from the year-long Covid-19 pandemic, Bonkers.ie said.

“These increases are hugely frustrating for consumers as they come at a time when energy demand in the home is at record levels due to lockdown,” said Bonkers.ie’s Daragh Cassidy.

“It always takes a brave person to bet on the future price of energy, as the price of gas – and to a lesser extent, coal – which make up a large part of our energy generation, can be so volatile.

“But with the world economy slowly recovering from the effects of the pandemic, it does seem like the demand for energy is only going to increase and therefore put upward pressure on prices in the medium term.

Mr Cassidy said that despite the rising prices, there were savings to be made by canny households.

There is huge competition among the 13 energy suppliers for new customers right now. In fact, the average energy switcher who is paying standard rates could save just over €500 right now by changing supplier. So if anyone hasn’t switched in over a year or so I’d really encourage them to do it today.” 

Flogas Energy general manager Paul Kenny said the increases were outside its control.

“We have kept our promise to freeze and reduce prices throughout the winter months, but increases are necessary due to the same rising wholesale and network costs that have affected all suppliers. We are keeping our prices as competitive as possible for our customers and will be reviewing as the market improves.”