'Catastrophic' winter ahead if energy bills surge goes untackled

Dr Tricia Keilthy, head of social justice and policy at St Vincent de Paul, said: 'This is going to intensify I’d imagine. And if it does, next winter could be catastrophic for people.'

The Government must take action now to prevent a “catastrophic" winter as energy costs soar, advocates have said.

Costs are expected to surge across the board in the wake of this week's Bord Gáis Energy price hike.

For customers who get both gas and electricity from Bord Gáis, it will mean a €390 and €385 increase to their annual bill, respectively. 

This latest rise announced on Tuesday will have seen average electricity prices rise 72% and gas prices rise 82% in just 18 months for their customers, according to data from Bonkers.ie.

“We can totally understand how worried people will be,” said Dr Tricia Keilthy, head of social justice and policy at St Vincent de Paul.

It comes on the back of price hikes from last year and unfortunately we know other suppliers will follow suit.

Dr Keilthy said the Government could still take action, despite indications it may not take additional measures beyond those already announced — such as the €200 energy rebate — until Budget 2023.

Finance Minister Paschal Donohoe has said the Government is doing all it can on energy prices, but that it can not cover all of the extra costs being faced by people and businesses this year.

“I absolutely appreciate that the higher costs that many are facing at the moment are going to be really difficult,” he told Newstalk Breakfast.

The Government drew ire last month when junior minister Seán Fleming told people to “shop around” in a bid to alleviate the pressures from the rising cost of living, but that idea has been part of the leadership's thinking for some time.

For customers who get both gas and electricity from Bord Gáis, it will mean a €390 and €385 increase to their annual bill, respectively. 

In its own strategy from 2016 to 2019 to combat energy poverty, the government said “the best method of lowering energy costs is to switch energy supplier”.

Recent parliamentary responses from Green Party ministers, Eamon Ryan and Ossian Smyth, told people to “switch or engage with their energy supplier”, as many households that do so could save on their bills.

The Commission for the Regulation of Utilities (CRU) recently published data on what people could expect to save if they switched regularly.

It said: "Based on CRU data, active customers who switched supplier or renegotiated with their current supplier every year for the last four years could have saved €704 on gas, €1,097 on electricity or €1,696 on their dual fuel costs and price comparison websites can aid a consumer to get the best deal possible.” 

Price comparison websites have also pointed to the hundreds of euro that could be saved if customers switched through the likes of introductory offers and tailoring their choice of tariffs to suit their needs.

The CRU also placed a strong emphasis on switching as a means of saving money.

“The CRU is acutely aware of the difficulties faced by many consumers this winter in the context of rising energy prices,” it said last month. 

While changing supplier may not be an option for all consumers, many can benefit from switching supplier or renegotiating with their current supplier. 

A recent CRU survey found 19% of electricity customers and 20% of gas customers switched in the past 12 months, with the main driver being money-saving opportunities. 

That same survey found roughly two in five consumers have never switched suppliers.

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However, Dr Keilthy said switching may not be the solution for many people.

“People might not have access to the internet, they might be on low incomes,” she said. 

"If you’re on low income, you’re more likely to be carrying debt. And if you’re in debt, you can’t switch. 

"If you’re in private accommodation and it’s in the landlord’s name, it’s difficult.” 

Switching is not the simple answer to this.

Her advice for those who are struggling was to talk to their supplier in the first instance.

Dr Keilthy said that, as we move into the summer months where we heat our homes less, the Government must act now to ensure the right supports are in place heading into next winter.

“This is going to intensify I’d imagine,” she said. “And if it does, next winter could be catastrophic for people. 

"Government and the regulator need to be proactive. We need to be seeing those supports and planning ahead for that.”