Households will be hammered with new gas and electricity price hikes of up to 40% because of the Russian war on Ukraine - and all the indicators point towards more to come.
One of the country’s main energy providers, Bord Gáis, announced the shock increases in bills that will see gas for their customers go up by a whopping 40% and electricity by 27%.
The hikes are predicted to add another whopping €700 to the annual bills for a home that’s a dual customer of Bord Gáis.
The price surges come as the country is still reeling from record prices at the pumps when petrol and diesel prices soared past €2 a litre last week.
And they came after most homes were left stunned when they went to refill the oil tank in recent months with the cost of heating oil up by as much as 50% since the autumn.
David Kirwan, managing director of Bord Gáis, said: “Regrettably, the company is increasing the average electricity bill by 27% and the average gas bill by 39%.
“The changes will take effect from 15 April 2022."
He added that the reason behind the hikes was the end of the company’s “winter price pledge.”
And this is unlikely to be the end of the pain for consumers as price comparison expert, Daragh Cassidy of bonkers.ie, said that “more suppliers are certain to follow.”
The country’s largest electricity supplier, Electric Ireland (formerly the ESB) could not rule out further price hikes coming down the line when asked by the Irish Mirror.
A spokesman for Electric Ireland could only go as far as saying the company is “determined” to keep prices low, despite being “exposed” to wholesale prices on international markets.
Some of the most vulnerable people will be hit hardest by the new price increases, such as pensioners and older people living alone.
Seán Moynihan, CEO of the charity for older people, ALONE, is calling for a response of a massive injection of cash similar to what the Government did in the face of Covid.
He said: “The huge increases in energy prices and the coming increases in food costs are hitting older people hard.
“When you have a fixed weekly income, like the State Pension, which is already below the poverty line, you have little or no disposable options you can drop out of your spending. “Heating is most important for older people to help manage chronic health conditions, but now some people are having to weigh up their choices between heating or eating.
“No one should have to make these choices.”
He added: “Sometimes you will see people who had shopping habits like picking up a treat or joint of meat at the weekend and that may have changed recently.
“We might explain it away but we are asking people to think a little deeper about the issues some older people may be facing.”
Mr Cassidy of bonkers.ie said: “Today’s news from Bord Gáis is sadly unsurprising given the huge increase in the price of gas that we’ve seen on wholesale markets in recent months.
“However the size and scale of the increase is unprecedented.
“It’s the first price hike announcement from any energy supplier this year. Last year there were over 35 - and more suppliers are certain to follow.
“The outlook is bleak for energy customers.
“The increase will add around €350 a year to the average household’s annual gas bill and €340 to the average annual electricity bill. But this comes on the back of price hikes that have added around €540 to customers’ gas and electricity bills since the autumn of 2020.”
Opposition politicians also expressed shock at the latest price hikes.
Sinn Féin social protection spokeswoman, Claire Kerrane, said: “While further rises to home energy costs were expected, the scale at which costs are set to rise is unprecedented and deeply concerning.
“Workers and families are struggling to heat their homes and it is clear that urgent action is needed from the Government, given the scale of these rises.
“The measures announced by Government in recent weeks, while welcome, do nothing to address the spiralling cost of home heating.
“It is urgent that the Government take further action on soaring home heating costs and that they take it now.”
Social Democrats climate spokeswoman, Jennifer Whitmore, said: “The energy price increases announced by Bord Gáis Energy today are unprecedented – and will have a devastating impact on those who are already struggling to heat their homes.
“An increase of 27pc for electricity and 39pc for gas will lead to soaring rates of fuel poverty all over the country.
“It must be remembered that Bord Gáis energy increased its electricity prices three times last year and its gas prices twice.
“These latest increases demonstrate that there appears to be no upper limit when it comes to the price of energy that customers are expected to suck up.”
