Bord Gáis Energy latest supplier to increase its prices

It likely won’t come as a surprise to most customers, but Bord Gáis Energy (BGE) has become the latest supplier to increase its energy prices.

The announcement from BGE follows in the footsteps of Electric Ireland, which also increased its prices significantly in recent days.

The latest price increase from BGE will see its electricity unit rate go up by 12.5% and its gas unit rate by 14%.

The price change will come into effect from 8th August.

Here’s what the latest price rise means for customers' bills...

What will the price increase from BGE set customers back?

Today's price increase from BGE will add just over €136 a year to the average household's electricity bill and over €100 to the average gas bill. 

Figures are based on an average household energy usage of 4,200 kWh per annum for electricity and 11,000 kWh per annum for gas, as defined by the Commission for Regulation of Utilities (CRU).

Speaking about the price increases, Managing Director of Bord Gáis Energy, Dave Kirwan said that external factors outside its control were behind the price hikes.

There have been sustained wholesale market increases over the past six months and, unfortunately, we now have to reflect these higher costs in our gas and electricity prices. We have sought to mitigate this impact and have not taken this decision lightly but the wholesale pressures are a market challenge outside of our control. 

We have been working hard to avoid increasing prices for as long as possible. This is our first gas price increase in over two years; we reduced gas prices in October 2019 and maintained at that level through two consecutive winters. In addition, autumn 2020 saw the introduction of our price pledge to freeze both gas and electricity prices during the colder winter period, despite rising network and system costs.

Previous price changes from Bord Gáis Energy

The latest price increase from BGE marks its second electricity increase of 2021 but its first gas increase in over two years.

The energy supplier’s last price change was only on April 12th when it increased its electricity prices by 8%, adding just over €80 to customers’ annual bills.

Before that BGE decreased its gas and electricity prices in the spring of 2020 by 6.5% and 4.5% respectively. It also reduced its gas prices in October 2019.

Not to forget, BGE introduced a price pledge in autumn of last year which saw it freeze both its gas and electricity prices during the cold winter period, despite rising network and system costs.

BGE has said it continually encourages any customer who is facing difficulty to engage with it with a view towards developing a suitable payment plan.

Price changes up until now

Here’s a look at this year’s price changes from each supplier.

Spring energy price increases

Summer energy price increases

Autumn energy price increases

*originally scheduled to take effect from 15th July

Why are energy prices on the rise?

Here are some of the main reasons why energy prices are rising for consumers:

• Fossil fuels - in Ireland we still rely heavily on the burning of fossil fuels to create energy for homes around the country. Up to 50% of electricity here is generated by burning gas, while 10-15% is from burning coal and oil. This means we’re susceptible to the price of fossil fuels. When the price of fossil fuels goes up, which it has been doing in recent months, so too does the price of energy.
• Costs of the network - our energy bills are made up of different costs, one of which is the cost it takes to maintain both the electricity and gas networks. This includes elements such as pylons and electrical lines, as well as the pipe network for gas. These costs make up around 30% of energy customers' bills and have been increasing too.
• Renewable energy - in essence, renewable energy requires considerable investment at present in the national grid and these costs are being passed onto the consumer.

For a more detailed analysis of why energy prices are increasing see here or listen back to this radio interview where we discussed the topic.

CEO of bonkers.ie, David Kerr, recently discussed the reasons behind the energy price increases and the implications for bill payers on Virgin Media News.

Save and switch

What are your thoughts on Bord Gáis Energy raising its prices? Despite the recent spate of energy price increases, you can always save by switching!  

At bonkers.ie, you can use our free energy comparison tool to compare a variety of deals from 13 different energy suppliers. You could potentially save up to €449 on average on your annual energy bills right now in just a few clicks!

Before switching, make sure you check out our guide on these 7 things to consider before switching supplier, or have a look at some of the most frequently asked questions in relation to the energy switching process.

Don’t forget that you could be subject to an early exit fee if you decide to switch before your contract is up.

If you’re looking to reduce your energy consumption at home today, consider adjusting your everyday habits! Here’s a list of 15 ways to use less electricity and save money. 

Get in touch with us!

Have you got any questions for us regarding the increase from Bord Gáis? We’d be happy to help answer them! Feel free to comment below or reach out to us on social media. We’re on Facebook, Instagram, and Twitter.