PICTURE:
SEPTEMBER 07 2022
Energia’s home energy prices to rise due to exceptionally high wholesale market costs
European energy markets are in crisis. Wholesale prices for gas and electricity in Ireland are at unprecedented levels creating significant challenges for customers, as well for the proper functioning of the energy industry and the wider economy. Coordinated Government intervention is urgently required to support energy customers financially this winter and beyond.
Uncertainty over the availability of energy in Europe has created highly volatile wholesale market conditions and as observed across Europe, it is not possible for energy suppliers to fully protect customers from these multi-billion euro increases. Relative to August 2021, when average monthly wholesale gas and electricity prices were already significantly above their historic averages, the wholesale market costs have increased over 650% and 195% respectively.
In recent weeks, wholesale market conditions have deteriorated further, resulting in a markedly higher cost for the purchase of gas to supply customers in the year ahead and consequently higher electricity costs. Suppliers are unable to absorb increases of this scale and unfortunately it has an impact on customer tariffs.
Under the new price structures announced, Energia electricity customers will see an increase of 29% on their bill. For the average customer this will mean a rise of €9.82* per week.
Energia gas customer bills will increase by 39% or an average of €10.02* per week.
There will be no increase to night rates for those customers on Smart tariffs.
Energia will increase home energy prices, effective from Friday 7th October 2022.
Gary Ryan, Managing Director Customer Solutions, Energia Group said: “We are acutely aware of regrettable impact that successive price rises are having on households, and we welcome the Government’s intention to intervene in the upcoming budget to support customers.
We will continue to support our customers and utilise our integrated energy business to minimise the impact of increasing market costs but the scale of wholesale cost increases to date far exceed our ability to maintain current customer price structures.
We recognise the difficulty these increases will present for many households. We urge any customers experiencing financial difficulties to contact us and we commit to working on an individual and flexible basis.”
As a customer focussed energy utility, Energia is also providing a range of supports to assist customers who may be experiencing financial difficulty. These include:
“Despite the tariff increases announced to date, the outlook for this winter is extremely concerning and the cost of measures to protect customers from the worst of these effects has to be measured in billions and not millions.
We are committed to continuing to support our customers and to being part of the solution, but the scale of the problem is such that, similar to other European countries, immediate government intervention is required to mitigate the worst of these effects.
We welcome the Government’s recent commitments to take action to address these challenges and we are ready to work with them on well-considered and coordinated interventions that can mitigate the impact of current and future tariff increases on customers while maintaining the integrity of the market. In the context of recent proposals from the EU commission to address the challenges of this winter, it is essential that relevant departments begin to engage with industry on these and other possible solutions.”
*Based on EAB (Estimated Annual Bill) effective 7th October 2022. See energia.ie for further details.
Uncertainty over the availability of energy in Europe has created highly volatile wholesale market conditions and as observed across Europe, it is not possible for energy suppliers to fully protect customers from these multi-billion euro increases. Relative to August 2021, when average monthly wholesale gas and electricity prices were already significantly above their historic averages, the wholesale market costs have increased over 650% and 195% respectively.
In recent weeks, wholesale market conditions have deteriorated further, resulting in a markedly higher cost for the purchase of gas to supply customers in the year ahead and consequently higher electricity costs. Suppliers are unable to absorb increases of this scale and unfortunately it has an impact on customer tariffs.
Under the new price structures announced, Energia electricity customers will see an increase of 29% on their bill. For the average customer this will mean a rise of €9.82* per week.
Energia gas customer bills will increase by 39% or an average of €10.02* per week.
There will be no increase to night rates for those customers on Smart tariffs.
Energia will increase home energy prices, effective from Friday 7th October 2022.
Gary Ryan, Managing Director Customer Solutions, Energia Group said: “We are acutely aware of regrettable impact that successive price rises are having on households, and we welcome the Government’s intention to intervene in the upcoming budget to support customers.
We will continue to support our customers and utilise our integrated energy business to minimise the impact of increasing market costs but the scale of wholesale cost increases to date far exceed our ability to maintain current customer price structures.
We recognise the difficulty these increases will present for many households. We urge any customers experiencing financial difficulties to contact us and we commit to working on an individual and flexible basis.”
As a customer focussed energy utility, Energia is also providing a range of supports to assist customers who may be experiencing financial difficulty. These include:
- Additional training for our customer care teams to identify and work with customers who are experiencing financial difficulty. Where appropriate, our teams can refer customers to our community and charity partners for further advice.
- Extending the financial supports we are providing to assist financially vulnerable customers.
- The provision of flexible payment plans to customer support agencies.
- Information and communication for our customers to support them in making changes to their energy consumption.
“Despite the tariff increases announced to date, the outlook for this winter is extremely concerning and the cost of measures to protect customers from the worst of these effects has to be measured in billions and not millions.
We are committed to continuing to support our customers and to being part of the solution, but the scale of the problem is such that, similar to other European countries, immediate government intervention is required to mitigate the worst of these effects.
We welcome the Government’s recent commitments to take action to address these challenges and we are ready to work with them on well-considered and coordinated interventions that can mitigate the impact of current and future tariff increases on customers while maintaining the integrity of the market. In the context of recent proposals from the EU commission to address the challenges of this winter, it is essential that relevant departments begin to engage with industry on these and other possible solutions.”
*Based on EAB (Estimated Annual Bill) effective 7th October 2022. See energia.ie for further details.