As consumers, over the last two years we have seen rising energy costs and price increases across the board. Worldwide lockdowns saw international trade coming to a halt. Oil prices took a dip during the pandemic however, over the last number of months oil prices have been slowly creeping back to their pre-pandemic rate and coal and gas prices are also on the rise. In line with those increases home energy providers have been hiking their prices with some price levels increasing more than once in the last few months. As some consumers are looking for a different alternative such as renewable energy sources to lower the running costs of their homes/businesses, energy companies will want to capitalise where they can.
Despite Irish consumers in recent years reducing their reliance on fossil fuels almost half of the electricity output of Ireland is still generated from burning gas and up to 15% from burning other fuels like coal and oil.
“Customers are getting a battering from increases in unit prices, increases in PSO levy and standing charges”- Head of Communications Daragh Cassidy
The lack of wind energy and the shutdown of some back up power plants for maintenance and the rise of coal and oil prices are the reasons for rising energy costs.
Taoiseach Michael Martin has stated the Government will use the Budget to ‘protect people with lower incomes’ from the impact of rising energy costs. However, It is not yet outlined how this will be fulfilled and in the electricity market most providers have already announced/ implemented energy price increases. It is evident that electricity prices are volatile and there is no guarantee that home/business owners will not be hit with future increases. Where do these providers draw the line?
Electric Ireland have announced their second price increase this year. Electric Ireland last raised its prices on August 1, when the price of its electricity rose by 9% and its gas prices went up by 7.8%. The company said the increase was due to the “unprecedented” recent increases in wholesale energy costs.
To be honest, renewable energy is now the way forward and what better time to invest in a renewable energy source and save money on energy price increases and carbon taxes in the future. Renewable Energy will allow you to avoid these rising energy costs. If you are considering renewable energy as an option to avoid these rising energy costs please call us on 051 364 054