Bord Gáis Energy is set to increase its gas and electricity prices from 9 October, with hundreds of thousands of households facing higher energy bills.
The price increases will apply to both unit rates and standing charges. A typical electricity customer will see their annual bill rise by 8.8%, or around €177, while a typical gas customer will face an increase of 9.3%, equivalent to €140 a year.
For households using both gas and electricity with Bord Gáis Energy, the average annual bill is expected to increase by 9.1%, or €317.
Bord Gáis Energy is the largest gas supplier in Ireland, with approximately 300,000 gas customers, while more than 400,000 customers use its electricity services.
Catherine Lonergan, Director of Customer and Commercial at Bord Gáis Energy, acknowledged that the announcement would be unwelcome news for customers.
She said the company does not take price increases lightly, but added that higher wholesale gas costs caused by global conflicts, alongside rising network charges, have made the increase necessary.
Lonergan also pointed out that this will be the company's first increase to its gas prices in four years and said Bord Gáis continues to offer the lowest gas standing charge in the market.
The energy provider has urged customers who are experiencing financial difficulties to get in touch so that it can discuss available supports. These include flexible payment arrangements and potential access to the company's Energy Support Fund.
The latest price changes come alongside a reduction in the Public Service Obligation (PSO) levy on electricity bills. From 1 October, the levy will fall from €1.59 to €0.56 per month, including VAT.
However, Daragh Cassidy of price comparison website bonkers.ie warned that the increases will still place additional pressure on households already facing high energy costs.
He said wholesale energy prices have risen sharply in recent months, partly due to ongoing conflict in the Middle East. Wholesale gas prices have doubled compared with the same period last year, while wholesale electricity costs over the past six months are around 30% higher than during the previous six-month period.
Cassidy said gas prices are already approximately 90% higher than they were four or five years ago, while electricity prices have increased by around 70% over the same period.
With household budgets already under pressure, he said even relatively moderate increases could have a significant impact.
Consumers looking to reduce the effect of the price hikes are being advised to compare energy providers and consider switching to a cheaper supplier, which remains one of the quickest ways to potentially cut household energy costs.
