Irish Energy Suppliers May Hike Prices Again in February

Households in Ireland could face another energy price increase of about 10 percent in February, according to Daragh Cassidy of Bonkers.ie. Cassidy told On The Claire Byrne Show that rising global fossil fuel prices, driven by conflict in the Middle East, are affecting supply chains.

Three major suppliers announced price rises earlier this month. "Bord Gais Energy, Energia, SSE Electricity this month increased their prices by around 10% on average for gas and electricity," Cassidy said. Electric Ireland, however, announced a price freeze. Cassidy said he does not expect that freeze to hold through the winter.

Wholesale market volatility makes predicting consumer costs difficult. Cassidy called such forecasts "a bit of a fool's game." He added that even if wholesale prices jump 30 or 40 percent, household bills would not rise by the same amount because wholesale costs account for roughly one third of a bill.

Cassidy explained that suppliers purchase energy weeks or months in advance. The rate charged to consumers reflects an average of wholesale costs over several months, which delays the effect of market shifts. He said price changes from major gas and electricity suppliers typically occur no more than twice a year.

The longer the war in Iran continues, Cassidy said, the more likely it is that Irish households will pay more. He declined to speculate on a specific date for the next increase beyond February.

Cassidy is a commentator with Bonkers.ie, a comparison website. The interview aired on On The Claire Byrne Show.