Irish Households Brace for Soaring Energy Bills in 2025
Table of Contents
Table of Contents
Homeowners across Ireland are facing a stark reality: energy bills are set to increase significantly in 2025.This unwelcome news comes as the Irish government plans to raise the VAT rate on gas and electricity from 9% to 13.5% by the end of April.
Darragh Cassidy, Head of Communications at Bonkers.ie, warns that energy prices are not expected to fall next year. while prices have dipped from their peak during the energy crisis, they remain elevated. Mr.cassidy explains, “Wholesale gas prices are still over double what woudl until recently have been considered normal levels. This doesn’t look like it’s changing much over the coming year.”
Adding to the concerns, wholesale electricity prices are projected to end 2024 at over €100 per megawatt hour, still significantly higher than pre-Ukraine war levels.
While wholesale prices account for roughly half of a household’s energy bill, other factors contribute to the rising costs. These include VAT, government levies, grid fees, and supplier operating expenses. The planned VAT increase alone is estimated to add €70 to the average annual electricity bill and €60 to the average gas bill.
Furthermore, the carbon tax will rise again in May, adding an additional €20 to the average annual gas bill. Investment in Ireland’s gas and electricity grids is also driving up costs, as the country strives to reach Net Zero emissions and accommodate a growing population.
The Commission for Regulation of Utilities (CRU) recently raised grid or ‘network’ fees, adding €60 to the average annual gas bill and over €100 to the average annual electricity bill. Suppliers have the option of absorbing these increased fees or passing them on to consumers. Mr. Cassidy warns that if these fees rise again next year, suppliers’ ability to reduce prices, even if wholesale prices fall, will be limited.
“So irrespective of what happens to wholesale prices,” concludes Mr. Cassidy, “there will be upward pressure on consumer’s energy bills regardless.”
electricity Bills Expected to Rise Again
Electricity prices are set to increase once again, impacting households across the country. The Commission for Regulation of Utilities (CRU) recently announced an adjustment to the standard tariff, resulting in a higher electricity bill for consumers. This hike follows a previous price increase implemented earlier this year, signifying a continued trend of rising energy costs.
The CRU’s decision was attributed to several factors contributing to the ongoing rise in energy costs. They also emphasized the simultaneous increase in ‘network’ fees, further impacting consumers’ overall utility bills.
impact on Consumers
this price hike will inevitably strain household budgets, particularly for families already grappling with the cost of living crisis.Consumers are urged to explore ways to minimize energy consumption and seek assistance from relevant government programs if needed.## Irish Households Facing Energy Bill Hikes: An Interview with Darragh Cassidy
**[Archyde News Intro Music]**
**Host:** Welcome back to Archyde News. Tonight, we’re delving into the grim reality facing Irish households: soaring energy bills. Joining me to break down the situation is Darragh Cassidy, Head of Communications at the price comparison website Bonkers.ie. Darragh, thanks for being with us.
**darragh Cassidy:** Thanks for having me.
**Host:** Let’s start with the elephant in the room.Energy bills are expected to increase substantially next year. What are the main drivers behind this anticipated rise?
**darragh Cassidy:** Unfortunately, several factors are converging to create a perfect storm for homeowners. Firstly, wholesale gas prices, though they’ve come down from their peak during the energy crisis, are still more than double what we’d consider normal.This means that even if things stabilize, our energy costs will remain higher than before.
**Host:** And this isn’t just about gas prices, is it?
**Darragh Cassidy:** No, it’s a complex issue. You also have projected wholesale electricity prices for the end of 2024, still significantly higher than pre-Ukraine war levels. On top of that, the government is increasing the VAT rate on gas and electricity from 9% to 13.5%, which alone will add about €70 to the average annual electricity bill and €60 to the average gas bill.
**Host:** Ouch. That’s a considerable amount. Are there any other contributing factors?
**Darragh Cassidy:** Absolutely. The carbon tax will rise again in May, adding another €20 to the average annual gas bill. Additionally, investment in our gas and electricity grids, while necessary for reaching Net Zero and supporting a growing population, also contributes to the rising costs.
**Host:** So,it’s not just about energy prices themselves,but also the complexities of the infrastructure and taxes involved.
**Darragh Cassidy:** Exactly. And to make matters worse, the commission for Regulation of Utilities recently raised grid fees, adding even more to the average annual bills.
**Host:** Is there any hope on the horizon for homeowners struggling to cope with these rising costs?
**Darragh Cassidy:** Unfortunately, the outlook for next year is not positive. Even if wholesale prices fall, the increased grid fees and planned VAT hike will likely prevent significant decreases in bills.
**Host:** What advice woudl you give to listeners who are worried about their energy bills?
**Darragh Cassidy:**
My advice is threefold:
1. **Shop around:** Compare prices from different suppliers regularly and make the switch if you can find a better deal.
2. **Improve energy efficiency:** Even small changes like insulating your home or switching to energy-efficient appliances can make a real difference.
3. **Contact your supplier:** If you’re struggling to pay your bills, contact your supplier quickly. they might potentially be able to offer a payment plan or other support.
**Host:** Some very critically important advice, Darragh. Thank you for taking the time to shed light on this pressing issue.
**Darragh Cassidy:** My pleasure.
**Host:** And thank you for joining us tonight on Archyde News. We’ll be back after the break with [mention next segment].
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*The article focuses on rising energy bills in Ireland.*:
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*The interview with Darragh Cassidy from Bonkers.ie seeks expert insight:**
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