Wholesale electricity prices decreased by over 50 per cent in the 12 months to March 2023, the CSO has announced.
Wholesale electricity prices decreased by 8.7 per cent since February 2023 and were 50.5 per cent lower in March 2023 when compared with March 2022. However, this major decrease has not been reflected on our domestic bills.
A Bord Gais Energy spokesman explained why, telling Dublin Live: "Our team of expert trading analysts purchase our energy on the forward market rather than on the more volatile spot market. This means that we buy energy up to eighteen months and sometimes longer in advance of when it is used by our customers.
Read more: When will the cost of electricity and gas bills fall? Expert explains as wholesale prices drop
"We do this to protect our customers, in so far as we can, from normal and abnormal market volatility. This has been particularly important and shielded our customers from the extreme price volatility of the energy markets over the past 18 to 24 months since prices began to move upwards in early Summer 2021."
The spokesperson also told us that to protect customers from the worst of this volatility, Bord Gais Energy absorbed €60m in losses in its energy supply business in 2022. The company also committed 10 per cent of operating profit to its Energy Support Fund and "continues to work hard to help customers where it can in these challenging times".
Meanwhile, an SSE Airtricity spokesman told us: "We know energy prices are a primary concern for our customers and last year we announced that SSE Airtricity would forgo all profits this financial year to support our customers through the cost of living and energy crises and keep our tariffs as low as possible. This followed a previously announced range of customer support measures which total up to €25 million."
The spokesman also said they have been "actively managing [their] approach and shielding customers as much as possible from market volatility". This included absorbing price increases for as long as possible, he said, adding that current wholesale prices still exceed where prices were pre-crisis.
He further added: "Over the past year we have seen wholesale market prices spike at over 1,000 per cent from previous levels, which, when considered against average market increases in consumer prices, demonstrates the active role suppliers have been playing in protecting customers from this volatility. We actively monitor energy markets and, as we have done before, will look to reduce our prices as soon as it is possible to do so."
READ MORE
Forecaster warns 'blast of cold air' to engulf Ireland in freezing forecast
RTE viewers 'heart broken' by homeless documentary showing horrors of life on street
Hamilton in Bord Gais Energy Theatre: Tickets, dates and everything you need to know
Bray restaurant announces closure after four years in business
Young mum almost dies after drink spiked with lethal dose of dangerous drug
Sign up to the Dublin Live Newsletter to get all the latest Dublin news straight to your inbox.
