Everything you need to know as expert predicts energy bill increases early next year

With global fossil fuel prices being pushed up yet again, Daragh Cassidy from bonkers.ie said there will be a huge amount of financial pain absorbed by energy companies.

Speaking on The Claire Byrne Show, Cassidy said there is only so much of this financial strain that companies will be willing to absorb for customers.

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

“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.” 

Cassidy says it's impossible to know what this will mean in terms of specific increases for customers in Ireland just yet.

However, he said: "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.” 

It could be several months before companies come to a decision on exact increases to offset these rising costs.

“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.”