Households face energy bill hikes of €700 a year 

Figures via: Bonkers.ie

Households will face energy bill hikes of at least €700 a year amid warnings of a bleak outlook that will keep electricity and gas prices at record highs throughout 2022. 

More than 700,000 Bord Gáis customers have been told they face an annual price hike of up to €775 from next month — €390 a year for gas and €385 for electricity. 

Customers were informed the average gas bill will rise by 39% while electricity will increase by 27% from April 15, with industry experts predicting that other suppliers will follow Bord Gáis in the weeks ahead. 

The latest hikes come after a painful 18 months where the average cost of heating and powering homes has risen by over €1,000 for many people.

The price rises also swallow the Government's €200 rebate scheme for all account holders, set to kick in next month. 

'Not able to shield citizens'

Taoiseach Micheál Martin has said the Government will not be able to shield citizens entirely from the shock of soaring energy costs, saying the country is paying the price of the “illegal and immoral war” waged by Russia on Ukraine.

Industry expert Daragh Cassidy, head of communications at the price comparison website, Bonkers.ie, said the move from Bord Gáis was “sadly unsurprising” but the size and scale of the increases are “unprecedented”.

“It’s the first price hike announcement from any energy supplier this year. Last year there were over 35. More suppliers are certain to follow. The outlook is bleak for energy customers," he said. 

Mr Cassidy has calculated the average annual price hikes across a number of suppliers since October 2020. He found:

• Bord Gáis Energy: estimated annual bill increase of €1,313
• Electric Ireland: up €323
• Energia: up €805
• Flogas: up €1,316
• Panda Power: up €1,246
• SSE Airtricity: up €503

Bord Gáis Energy managing director Dave Kirwan blamed the price rises on "persistently high demand on gas worldwide, reduced supplies, low storage volumes, geopolitical issues, and late winter conditions".

“There have been continued increases in wholesale energy costs over the past two years, particularly in the past 12 months,” Mr Kirwan said.

“This, together with the expectation that costs will remain both high and volatile for some time, means we are forced to increase our prices.” 

Older persons charity Alone said the Government should introduce a “pandemic-like response to alleviate the rising cost of living to help those in greatest need”.

'Choice between heating or eating'

“Heating is most important for older people to help manage chronic health conditions, but now some people are having to weigh up their choices between heating or eating,” chief executive Sean Moynihan said.

“No one should have to make these choices.” 

The charity called for immediate measures such as widening the eligibility criteria for the fuel allowance and introducing a temporary means-tested basic food allowance at €25 a week.

Environment Minister Eamon Ryan said the Government was aware the Bord Gáis price hike was coming but added: "We can't cover every single cost increase. The most important measure is to try and help reduce our use of these fuels.”