Why are energy suppliers hiking prices?


Over the last few weeks we’ve seen an unprecedented
wave of energy price hikes sweep across the Irish market. So, in this video we’ll look
at which suppliers have increased prices and by how much, we’ll take a look at why most of
Ireland’s energy suppliers have decided to increase prices now, and finally we’ll talk
about how you can beat the hikes. The price hiking trend was kicked off by SSE Airtricity
on September 29th when the supplier announced that it would increase its electricity prices
by 5.6% on November 1st. This will add an expected €47 to average annual electricity
bills. On the very same day, Bord Gáis Energy announced that it would increase its electricity
prices by 5.9% and also increase its gas prices by 3.4%, taking effect on the 1st of November
2017. The electricity price increase from Bord Gáis Energy will add about €57 to
average annual electricity bills and the gas hike will add about €25 to average annual
gas bills. The following Friday, Electric Ireland announced that it would freeze its
prices through the winter months but that it would increase electricity prices by 4%
on the 1st of February 2018. This increase from Electric Ireland will add about €35
to average annual electricity bills. There was then a two week period of silence where
nothing happened, before Energia resumed the price hiking trend, by announcing that it
would increase its electricity prices by 3.9%, taking effect on the 1st of December 2017.
This will add an expected €31 to average annual electricity bills for Energia customers.
Just a few days later, PrePayPower announced that it would increase electricity prices
too, taking effect on the 1st of December and adding about €34 to average annual electricity
bills. Then on the 1st of November, the very day on which SSE Airtricity and Bord Gáis
Energy’s price hikes took effect, Flogas announced that it would increase its gas prices by 3.3%,
which will add about €20 to average gas bills, taking effect on the 1st of December
and within minutes of that increase from Flogas, Pinergy announced that it would increase its
electricity prices by 5.6% on the 1st of December and add about €41 to average annual electricity
bills. So that’s seven suppliers announcing price hikes in less than five weeks. Every supplier that’s announced a price increase has blamed it on the increased cost of wholesale
gas. Wholesale gas prices increased by 50% in September, compared to the same time last
year. Unexpected gas power outages across Europe and closer to home have caused this
surge in prices. Most notably, the unexpected outage at the Corrib Gas Field in Ireland
in late September. Add to this, the increased strength of sterling against euro and you
have a situation where there’s been a lot of upper pressure on wholesale gas prices.
Clearly, Ireland’s energy suppliers have decided to not absorb these increased costs but rather
to pass them onto households. Thankfully, there are ways for you to offset these pendingprice increases. Despite the fact that the majority of Irish energy suppliers have announced
price increases for existing customers, most of them are still offering very attractive
deals for new customers who switch. For example, Energia is offering over 30% discount to new
customers who switch electricity to the supplier, Flogas is offering a 27% discount to customers
who switch gas, Electric Ireland is offering €175 cashback and Just Energy is offering
an innovative fixed price plan, which means that your price won’t change over the course
of a year. Similar offers are available from Bord Gáis Energy, SSE Airtricity and more.
So I would strongly encourage anyone worried about the pending price increases, or being
hit with bigger electricity or gas bills this winter to switch suppliers. There’s over €360
to be saved on average by doing so and the process can be completed entirely online on
bonkers.ie in a matter of minutes. So there you have it guys, we’ve seen an unprecedented
wave of price hikes sweeping across the Irish energy market which has a lot of customers
understandably worried about bigger bills coming their way over the coming months but
don’t worry, you don’t have to take these price hikes lying down. By switching suppliers,
you can offset the pending price increases and get on the cheapest deal available as
we head into those cold winter months when bills tend to at their biggest. Thanks for
watching the video guys, hope you found it useful, it’s been pretty tough to keep on
top of all of these price hikes but I hope that captures it all for you in a nice, easy
to follow way. If you’ve any questions at all about how to beat these price increases
or the extent to which you might be affected, just leave a comment below and we’ll get right
back to you.

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