The €600 energy credits announced by the government will likely be eaten up by annual charges as a series of price hikes begin today.
Energy bills will skyrocket this month as seven suppliers raise their prices, with four suppliers raising them from today.
As families turn on their heating for the winter, they’ll see steep hikes in the bills hitting their floor mats.
This time, some families will have to reckon with additional annual costs of up to 600 euros due to the increased electricity bills.
In the last 18 months, average annual electricity bills have doubled to more than €2,000, with similar increases for gas.
This increases the electricity costs for an average household by €1,200 in one year.
This means that the government’s plans to pay out three energy credits totaling 600 euros only cover around half of the additional costs for electricity alone.
The first loan of 200 euros is to be paid out before Christmas – but prices are expected to rise sharply in October.
Electric Ireland’s 1.2 million customers will see electricity unit prices rise by a whopping 38 per cent from today.
Also increasing prices from today are SSE Airtricity, PrepayPower and Community Power.
The latest increase will add a further €600 to annual electricity costs for SSE Airtricity customers.
Bord Gáis Energy’s electricity tariffs will skyrocket by 46 percent starting tomorrow, adding €579 to the annual cost for its 300,000 electricity customers.
Next week, Energia will implement its fifth price hike since January last year, with electricity tariffs rising 34 percent when the PSO levy cut is factored in.
Flogas Energy will increase electricity and gas prices from the end of the month. Pinergy raised prices last month.
The higher prices coincide with colder nights and come on top of the huge price increases announced in recent months.
Daragh Cassidy of price comparison site Bonkers.ie said October is the time when many people turn the heating back on and home energy demands skyrocket.
“This year also coincides with huge price increases. These increases come on top of energy prices that are already at record levels.”
He said households must be prepared to face energy bills in the coming weeks, which in many cases will more than double last year’s levels.
And Mr. Cassidy warned that more price hikes are expected in the coming weeks.
“Although the gas price on the wholesale markets has fallen slightly in recent weeks, it is very volatile and is still massively up compared to early last year.”
He said the next few months will be very difficult with power outages, more suppliers exiting the market and the threat of further price increases.
Meanwhile, Tánaiste Leo Varadkar said a way had to be found to protect 200,000 pay-as-you-go customers from having their gas or electricity connection cut off.
He told Solidarity TD Mick Barry he would be speaking to Environment and Social Protection Ministers about how to protect such customers.
Mr Barry highlighted the case of a woman who had her gas and electricity cut off when she ran out of credit.
There is a moratorium on power and gas shutdowns for the winter. Mr Barry questioned whether this applied to customers in the pay-as-you-go system.
Mr Varadkar said the moratorium “should apply to everyone”.
However, he acknowledged that “due to how pay-as-you-go works, it’s difficult to know how this would apply in the case of pay-as-you-go customers”.
https://www.independent.ie/business/personal-finance/october-bill-hikes-wipe-out-energy-giveaways-42031505.html October bill hikes wipe out energy gifts