As a business energy user, you’ve likely been monitoring the energy market and no doubt have heard a significant amount of media commentary in recent months.
Amidst unprecedented market volatility, the cost of global energy has been rising continuously for the past two years and unfortunately, we can no longer continue to absorb these significant increases. As a result, regrettably our gas and electricity rates will be increasing from 14 October 2022.
As has been extensively discussed in recent times, the factors driving the increase in wholesale energy prices include high demand on gas worldwide, reduced supplies, low storage volumes, geo-political issues and late winter conditions.
Furthermore pass through charges have increased for the coming year for both gas and electricity
At Bord Gáis Energy, we understand that that this is not welcome news and that your business may be facing many challenges, but we want to assure you that we’re still doing all we can to help our customers.
From the 1st of March 2023, the Commission of Regulation of Utilities (CRU) will be enabling payments to customers through the Public Service Obligation (PSO). Due to unprecedented and sustained high wholesale electricity prices, the PSO fund requirement for PSO Year 2022/23 is negative (- €491.25 million).
For further information please visit cru.ie.
The PSO levy rates from 1 March 2023 to 30 September 2023 are as follows:
- For low-volume customers (Maximum import capacity < 30kVA) the PSO payment will be €44.50 ex VAT per month.
- For medium and large business customers (Maximum import capacity ≥ 30 kVA) the PSO payment will be €5.40 ex VAT per kVA.
What are Pass-Through costs?
Pass-Through costs are set by ESB Networks / EirGrid / SEMO (TUoS, DUoS, Market Operator, Imperfection Charges).
Network charges in both gas and electricity are increasing from 1 October 2022.
For more information see: Business Tariffs explained
Why are energy costs rising?
While this increase is very regrettable, the cost of energy has been rising continually for the past two years and we can no longer continue to absorb these significant increases.
There are a range of factors driving the rising cost, including:
- High demand on gas around the world as economies recover from the Covid-19 lockdowns.
- A late cold spell over the winter added to the demand pressures.
- Delays to, and the subsequent halting of the Nordstream II pipeline from Russia to Europe has put pressure on the supply chain.
- Additionally, low storage, low winds and an increasing demand for gas due to coal and nuclear retirements are also having an impact on prices.
While this is a difficult time, Bord Gáis Energy has over 45 years’ experience in the energy market. We are part of the Centrica group and we promise to do our best to find a way through these unprecedented times with our customers.
The 2010 Finance Bill introduced a carbon tax to be applied to mineral oils, natural gas and solid fuels supplied for combustion in Ireland.
If you’re a gas customer, your carbon tax for natural gas will be increasing from 1 May 2023 to €0.00877 per kWh (ex VAT). For further details see ‘Your guide to Budget 2022’ on www.finance.gov.ie.
We're here to help
If you’re worried about meeting your energy repayments on receiving your next bill, please call us on 01 611 01 92. We can offer you flexible payment options that work for you and your business.
Depending on market conditions, we've also a range of fixed gas and electricity price plans for all meter types that can protect you against the volatility in the market. Call our Business team on 01 611 01 33 to see what options best suit your business.
If you have any questions, please feel free to contact us on 01 611 01 33, Mon-Fri, 8.30am – 6.30pm or email us at firstname.lastname@example.org. We’ll be happy to answer any questions and work this through with you.
We understand this might be a challenging time for your business and we'll continue to be here to help in any way we can.