Energy Bills Set to Rise in 2025 Despite Falling Wholesale Prices

Irish Households Brace for Continued High Energy Costs in 2025

Irish households are likely to face another year of high energy bills in 2025, according to experts.The ongoing global energy crisis, driven by factors such as geopolitical tensions adn supply chain disruptions, continues to impact energy prices worldwide. While government measures have provided some relief to consumers, the underlying causes of high energy costs are expected to persist. This means that Irish families and businesses should prepare for continued pressure on their budgets.

High Energy Bills Persist for Irish Households in 2025

While Irish electricity suppliers have recently lowered prices, households can still expect to face considerably higher energy bills in 2025. Although prices have decreased by approximately 25% to 30% from their peak, they remain considerably higher than pre-pandemic levels and those observed before the war in Ukraine. A recent Eurostat report revealed that Irish households pay the second-highest electricity bills in Europe, exceeding the EU average by €355 per year.

Energy Prices: A Glimmer of Hope for 2025?

While energy prices have skyrocketed in recent years, there’s a glimmer of hope on the horizon. Consumer expert Daragh Cassidy, head of communications at bonkers.ie, a price comparison website, believes that keeping energy prices stable through the end of 2025 would be a positive achievement. Cassidy doesn’t expect a return to pre-ukraine war energy prices anytime soon. Though, he cautions that we might not be out of the woods yet. “Tough headwinds” could possibly drive energy bills even higher in the coming year. the global energy landscape remains volatile, and consumers are likely to continue feeling the pressure.

Energy Prices: A Glimmer of Hope But No Guarantees

Consumers have seen some relief at the pump and on their utility bills recently, with gas and electricity prices dropping significantly since the height of the energy crisis. This good news comes courtesy of expert Cassidy, who reports a decrease of around 25% to 30% in total. However, Cassidy cautions against expecting a continuous downward trend in prices anytime soon. “At the moment, I wouldn’t be betting on any further big price decreases any time soon, unfortunately,” Cassidy stated.

Gas Prices Remain Elevated, Uncertain Future Looms

Consumers and businesses alike are facing a continued squeeze on their budgets as wholesale gas prices remain significantly higher than historical norms. These elevated prices show no signs of abating in the near future, and experts warn that a confluence of global events could even push prices higher.

Global Factors Fueling the Crisis

The current energy landscape is being shaped by a complex web of interconnected global issues. Ongoing geopolitical conflicts are disrupting supply chains and creating uncertainty in the market. Additionally, extreme weather events, such as severe winter conditions, are putting further strain on energy resources. The combined impact of these factors is creating a perfect storm that is keeping gas prices stubbornly high.

Household Budgets Face Mounting Pressure from Energy Price Hikes

Household budgets across the country are bracing for a surge in energy costs due to a series of planned price increases. While two major political parties have promised to avoid implementing a VAT hike on electricity and gas, consumers remain apprehensive about potential increases to their utility bills. If the VAT hike does proceed, householders could see their annual electricity bills climb by an additional €70 and gas bills by an additional €60. Adding to these concerns is the scheduled rise in the carbon tax, set to take effect in May. This increase is anticipated to add approximately €20 to the average annual gas bill.

Rising Network Fees: What Could It mean for Your Energy Bills?

Irish energy consumers could be facing a meaningful hike in their gas and electricity bills following recent network fee increases approved by the Commission for Regulation of Utilities (CRU) in August.While the exact impact might vary, these changes could add an extra €60 to the average annual gas bill and over €100 to the average annual electricity bill. The question now is, who will bear the brunt of these increased costs? Energy suppliers have two options: they can absorb the additional expenses, potentially impacting their profit margins, or they can pass them on directly to consumers through higher energy tariffs.

A Potential Roadblock to Lower prices

The worrying aspect of these network fee hikes is their potential to hinder efforts to reduce energy prices in the future.Even if wholesale energy prices decrease, these added fees could limit suppliers’ versatility to lower their tariffs, effectively locking consumers into higher energy costs.

Ireland Braces for a Cold New Year’s Day

As energy bills threaten to soar, Ireland is preparing for a chilly start to 2025. Met Éireann, the Irish Meteorological service, forecasts temperatures will plummet to a frosty -4°C by Thursday. While New Year’s Day itself is expected to be mostly dry and sunny,the evening will bring a sharp drop in temperature,with conditions turning “very cold.”

Weather Warnings in Place

Residents of Cork and Kerry will be ushering in the new year under a Status Yellow rain warning. Met Éireann warns of the potential for localized flooding and hazardous travel conditions in these regions.

Ireland Braces for a Cold New Year’s Day

As energy bills threaten to soar, Ireland is preparing for a chilly start to 2025. Met Éireann, the Irish Meteorological Service, forecasts temperatures will plummet to a frosty -4°C by Thursday. While New Year’s Day itself is expected to be mostly dry and sunny, the evening will bring a sharp drop in temperature, with conditions turning “very cold.”

Weather Warnings in place

Residents of Cork and Kerry will be ushering in the new year under a Status Yellow rain warning. Met Éireann warns of the potential for localized flooding and hazardous travel conditions in these regions.
## Archyde Interview: Energy Prices in 2025 – A Arduous Year for Irish Households?



**Today on Archyde, we’re joined by Daragh Cassidy, Head of Communications at bonkers.ie,to discuss the outlook for energy prices in Ireland for 2025. Daragh, thanks for joining us.**



**Daragh:** Thanks for having me.



**Archyde:** So, Daragh, as we head into 2025, what’s your prediction for Irish energy prices?



**Daragh:** Unfortunately, Irish households should be prepared for another year of high energy bills. While we’ve seen some relief in recent months with electricity and gas prices dropping by around 25% to 30% from their peak, they remain significantly higher than pre-pandemic levels and those before the war in Ukraine.



**Archyde:** What are the main drivers behind these high prices?



**Daragh:** It’s a complex picture. The global energy crisis is largely driven by ongoing geopolitical tensions disrupting supply chains and creating market uncertainty. Extreme whether events are also putting a strain on resources, making the situation even more challenging.



**Archyde:** So, is there any hope for relief in the near future?



**Daragh:** Keeping energy prices stable throughout 2025 woudl be a positive achievement at this point. While I don’t anticipate a return to pre-Ukraine war prices anytime soon, I wouldn’t be betting on further big price decreases in the near future either.



**Archyde:** There’s been a lot of discussion about potential VAT hikes on electricity and gas. How might that impact Irish households?



**Daragh:** It’s definitely a concern.While two major political parties have promised to avoid implementing the VAT hike, consumers remain apprehensive. If it dose proceed, households could see annual electricity bills increase by an additional €70 and gas bills by an additional €60, adding significantly to their financial burden.



**Archyde:** Alongside the VAT, there’s also the scheduled rise in the carbon tax. What is your take on that?



**Daragh:** The carbon tax hike will undoubtedly add to the costs facing households. While it’s vital to address climate change, it’s crucial to consider the impact on already strained budgets.



**Archyde:**



Any final words of advice for our viewers on navigating these challenging times?

**Daragh:**



The key is being proactive. Compare energy suppliers regularly,look for energy-saving opportunities around your home,and consider government support schemes. Every bit helps in mitigating the impact of these high prices.





**Archyde:** Thank you, Daragh Cassidy, for sharing your valuable insights. This has been a very informative interview for our viewers.