Families face huge energy bills of €600 each for gas and electricity as we head into winter.
The bi-monthly bills will shock customers as we head into the colder and darker months and wreak havoc on household finances.
For just two months in winter, consumers will probably have to reckon with a total of 1,200 euros for gas and electricity.
As the energy crisis bites, it is feared that more than two million people will face fuel poverty.
It comes after Bord Gáis Energy became the fifth supplier to raise prices in the latest wave of cost hikes.
Bord Gáis Energy increases electricity prices by 34% from October 2nd. This will add €579 per year to the average annual electricity bill.
Gas is up 39 percent, adding €525 a year to the cost of that fuel to households.
Electricity prices have increased three times in the past year, gas prices twice. Bord Gáis’ profits rose by 74 percent last year to almost 40 million euros.
If all increases are taken into account, households pay more than 1,300 euros per year for their electricity and more than 1,100 euros for their gas.
The average electricity bill for SSE Airtricity customers has doubled to €2,323 after five price increases since the beginning of last year.
Electric Ireland’s electricity bills are increasing by more than €1,100 a year over the same period. According to calculations by Bonkers.ie, this means a doubling of the average annual bill to €2,177.
The ESB subsidiary has hiked its electricity and gas prices five times since early 2021, most recently just last month.
In the price frenzy, the electricity bills alone will rise to around 500 euros by November. Gas bills could reach €350 as early as next month, according to calculations by Bonkers.ie’s Daragh Cassidy. But after Christmas they will be even higher.
“In January, people are expecting over €600 on their bi-monthly electricity bill and €600 on their bi-monthly gas bill,” he said. That is more than twice as much as in the previous year.
Including the cost of heating oil in the household, most families now have to pay around 4,300 euros a year for heating and electricity, twice as much as in the previous year.
That will rip through family budgets and plunge more than two million people into fuel poverty this winter.
This is according to figures from the Economic and Social Research Institute (ESRI).
Earlier this year, ESRI examined the impact of various price increases on electricity, gas, heating oil and solid fuels.
It now estimates that 43 percent of households could now be living in fuel poverty.
This number corresponds to just over 800,000 households. This means that around 2.25 million people will face fuel poverty this winter.
Energy poverty is defined as households spending more than 10% of their net income on energy. This does not include the cost of motor fuel.
According to the Central Statistical Office, the average annual salary is 45,324 euros per year.
If 10% of that has to be spent on energy, that means the average earner has to spend at least €4,300 on heating and lighting costs.
This means there is mounting pressure on the government to present a massive bailout for households and small businesses in next month’s budget.
And a spate of price hikes means predictions that more than two-thirds of households would be pushed into fuel poverty could come true.
This was a worst-case scenario prepared by ESRI for the state’s energy crisis oversight group.
Mr Cassidy said: “Since the beginning of January 2021, most electricity and gas providers in this market have doubled their prices.”
The cost of heating oil has also doubled.
Figures projected by ESRI show that soaring energy prices will add €2,000 to the costs families face.
And an even greater number of families could fall into fuel poverty if the current surge in energy consumption due to rising wholesale gas prices continues.
ESRI calculations show that if prices doubled from 2021 figures, seven out of 10 families would be living in fuel poverty.
https://www.independent.ie/business/personal-finance/energy-crisis-electricity-and-gas-bills-set-to-reach-1200-for-just-two-months-come-winter-41958105.html Energy crisis: Electricity and gas bills are set to reach 1,200 euros for just two months next winter