Energy bills are likely to go up again in the New Year, an industry insider has predicted. 

Global fossil fuel prices have been pushed up again this year, as conflict in the Middle East continues to impact supply chains. 

On The Claire Byrne Show, Daragh Cassidy of Bonkers.ie said there is only so much financial pain that companies are willing to absorb. 

“Bord Gais Energy, Energia, SSE Electricity this month increased their prices by around 10% on average for gas and electricity,” he explained. 

“Yet some suppliers like Electric Ireland actually announced a price freeze. 

“But I do think when we get into the New Year, we're going to see suppliers having to hike their prices again.

“Now, if wholesale prices go up, let's say by 30 or 40%, that doesn't mean that people's bills are going to go up by 30 or 40% because wholesale prices now only make up around a third of the bill.” 

Workers installing solar panels on a roof in Ardara, County Donegal. Picture by: Alamy.com.

Despite this, Mr Cassidy noted that given the volatility of global energy prices, predicting what Irish consumers will pay can be “a bit of a fool’s game”. 

“But I do think when we get into the new year, probably in February, we're going to see prices go up again by maybe 10% or slightly more,” he said. 

“Especially if things keep going the way they are.” 

Mr Cassidy added that energy suppliers typically take their time to assess and forecast prices, which means it is usually several months before they agree on a price change. 

“They're not all buying energy today,” he explained. 

“They're buying it weeks and months in advance. 

“So, the price we pay for our gas and electricity is more like an average price of the cost of energy in wholesale markets over several months.

“That's why it does take time to feed through and some suppliers are happy to, or maybe not happy, but they do maybe absorb the cost a little bit as well. 

“So, usually we only see prices go up from the main energy suppliers, the main gas and electricity suppliers, maybe twice a year max.” 

Overall, Mr Cassidy said that the longer the War in Iran goes on for, the “more likely” it is that Irish households will end up paying more.

Main image: Energy bills. Picture by: Alamy.com.