Record wholesale energy costs force price rise for customers
- Significant increases in wholesale energy costs, which account for majority of customer bill
- Reduced gas supplies from Russia, military action in Ukraine, and low storage levels driving volatility and rises on wholesale markets
- Customer supports now include the Energy Support Fund, additional customer service resources, flexible payment options among other measures
- 10% of operating profits pledged to the Energy Support Fund to help customers during the energy crisis
- €250m investment in new power generation plants to aid longer term security of supply and decarbonisation of energy generation
Faced with record increases in wholesale energy costs, Bord Gáis Energy is forced to increase the price it charges customers for gas and electricity. Regrettably, Bord Gáis Energy has today informed regulators and customers that the average residential electricity bill will rise by €48.25* per month (34%) and the average residential gas bill will rise by €43.80* per month (39%) from 2 October 2022. Bord Gáis Energy is not increasing standing charges.
Knowing that some customers face challenges in paying their bills, the company pledges 10% of operating profits to its Energy Support Fund during the energy crisis. €1.25m was already pledged to the fund earlier this year to support customers struggling to pay their bills. Working in partnership with the Money Advice and Budgeting Service (MABS), Focus Ireland, and Saint Vincent de Paul, the fund has already supported many eligible customers through this difficult time and will continue to do so.
Dave Kirwan, Managing Director of Bord Gáis Energy said: “There is no precedent for the current energy crisis and consumers and businesses across the globe are grappling with very challenging increases in the cost of living. We deeply regret having to raise our prices but the scale of increases in wholesale energy costs leaves us with no choice. We continue to do everything we can to reduce the impact on our customers and keep our rates as competitive as possible. We are also pledging 10% of our operating profits to our Energy Support Fund to help customers of ours who simply can’t afford to pay for energy this winter. We are working with a number of organisations to help customers access this fund, which has already supported many eligible customers facing difficulty. We know that there are customers who are struggling and our urgent message to them is to engage with us so that we can give them supports that reflect their unique circumstances.”
Bord Gáis Energy is committed to providing the best possible support for its customers during this turbulent time. The company has already introduced a range of measures including:
- Enhanced payment options/flexibility for its customers to help them manage their bills/arrears in a tailored, individual way that best suits them.
- Increased resources and investment in greater training of customer care agents to ensure they are available and can offer support and advice to customers.
- Enhanced communication and advice to customers on energy efficiency tips and supports available to help them to manage their bills.
Bord Gáis Energy is planning to invest significantly in longer term infrastructure, including €250m in new power generation plants that will be capable of running on hydrogen. These plants are scheduled to be on-stream from the end of 2024 and will aid longer term energy supply security and energy decarbonisation.
About Bord Gáis Energy:
Established in 1976, Bord Gáis Energy is an energy supply and services company with a strong Irish heritage. In 2014 the company became part of Centrica plc, a leading international energy services and solutions provider that is founded on a 200-year heritage of serving people. Bord Gáis Energy supplies energy and services to hundreds of thousands of homes and businesses in the Republic of Ireland.
- *These figures are based on a typical annual consumption of 4,200 kWh for electricity and 11,000 kWh for gas (as defined by the Commission for Regulation of Utilities) and Bord Gáis Energy standard tariffs.
- PSO adjustments are reflected in today’s announcement. For more see CRU Publishes Public Service Obligation Levy for 2022/23 - Commission for Regulation of Utilities
- In relation to Bord Gáis Energy financial results for the first six months of 2022 announced recently, it is important to note that the predominant reason for the increase in operating profits for H1 2022 is that the 445MW gas fired power station in Whitegate Co Cork, a key part of a stable energy supply system, is now operating normally whereas it was offline (not operating) for most of 2021. Our financial results also reflected the reduced retail margins in a challenging environment for energy supply.
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