Irish Energy Suppliers Set For Another 10% Price Hike By February

Irish households should expect their gas and electricity bills to rise by approximately 10 percent by February, according to industry analysis. The projected increase follows a recent round of pricing adjustments by major providers and reflects ongoing volatility in global energy markets.

Daragh Cassidy of Bonkers.ie provided the forecast on The Claire Byrne Show. He noted that Bord Gais Energy, Energia, and SSE Electricity already raised their gas and electricity prices by an average of 10 percent this month. In contrast, Electric Ireland announced a price freeze, though Cassidy expects that strategy will not hold indefinitely.

Cassidy explained that suppliers typically adjust prices only twice a year. This slow response time occurs because companies purchase energy in bulk weeks or months in advance. Consequently, the final bill reflects an average of wholesale market costs over several months rather than the immediate daily price. He stated that wholesale prices currently account for roughly one-third of the total bill. Therefore, a 30 or 40 percent jump in wholesale costs does not translate directly into a 30 or 40 percent increase for consumers.

The primary driver for the next price hike is the continued impact of the War in Iran on supply chains. Cassidy described the current market conditions as volatile, noting that predicting exact consumer costs is difficult. He said the longer the conflict persists, the more likely Irish households are to face higher expenses. He characterized the process of forecasting these changes as a bit of a fool's game due to the complexity of global supply dynamics.

Suppliers are currently absorbing some of the financial pain before passing it on to customers. Cassidy observed that companies have a limit to how much loss they are willing to sustain. He indicated that February is the likely month for the next round of increases, assuming current market trends continue. The data suggests a steady climb in costs rather than a sudden spike, driven by the lag between wholesale purchasing and retail billing cycles.