Bord Gáis Energy has announced ‘unprecedented’ price increases for both gas and electricity.
From April 15th, the average gas bill will increase by 39%, while the average electricity bill increases by 27%.
In a statement, the company said the increases are due to high global wholesale energy costs and market volatility.
It said the issues are “expected to continue for some time”.
Price-comparison site Bonkers said the increases will add around €350 to average household’s gas bill and around €340 to the average electricity bill.
It noted that the hikes come on the back of previous increases that have added around €540 to customers’ gas and electricity bills since the autumn of 2020.
Bonkers said the increases are not surprising given the huge increases in gas prices on wholesale markets – but noted that the “size and scale of the increase is unprecedented”.
It said there were more than 35 price hike announcements from Irish energy companies last year and, while Bord Gáis is the first to announce a change in 2022, “more suppliers are certain to follow”.
Bord Gáis raised electricity prices three times last year and gas prices twice.
On the Bord Gais increases Minister Eamon Ryan says it will likely cost their customers €300 - well above the €200 energy grant from the Government pic.twitter.com/06HvZRKkFo
— Seán Defoe (@SeanDefoe) March 15, 2022
Speaking Washington where he is due to meet the US Energy Secretary this afternoon, the Climate Minister Eamon Ryan admitted the Government's interventions in the fuel market won't match the increases in prices.
“The high international gas price particularly is going to cause real difficulty for us and our householders,” he said.
“That is why we increased the social welfare provisions last October – it was already in train in that sort of timeframe.
“The €200 credit coming from government; it won’t cushion the full blow. That price increase is in the order of €300 so we can’t cover the full cost but that €200 credit will help cover some of it.”
'"Not welcome news"
Bord Gáis Energy Managing director Dave Kirwan said: “: “We know that today’s announcement is not welcome news”.
“We will navigate through these unprecedented times with our customers; however, there have been continued increases in wholesale energy costs over the past two years – particularly in the past 12 months.
“This, together with the expectation that costs will remain both high and volatile for some time, means we are forced to increase our prices.”
He said the company was working with the Money Advice and Budgeting Service (MABS) and other charities to establish a €1.25m energy support fund and offer tailored advice to help customers meet their bills.