Welcome to the new phase of Rip-off Ireland, Profiteering Ireland…
The idea of having a nice little self-sufficient farm somewhere becomes more attractive to me by the day.
War profiteering
Isn’t it pretty common for forwards to be bought for the energy market? I believe there was some back up for this.
So the energy we are consuming “today” was bought under a forward contract at the previous high price, because the energy suppliers couldn’t guarantee the prices would come down. So they entered forwards to mitigate the risk and now the price has come down, but they’re tied to the high price. It will trickle down later.
It’s coming
The contracts are purchased in 6month intervals
> “So wholesale prices are still over 300 per cent above what might be considered normal levels,” Mr Cassidy said.
> household electricity prices have gone up by around 100% to 150% depending on your supplier since late 2020, he said.
Hedging prevented Irish household energy bills from being up to about 5 times higher than normal. You can’t expect to both be shielded from massive spikes in energy prices but exposed to sudden drops.
I don’t like the big increases in my bills any more than anyone else, but I’d take a bill gradually doubling over having it quickly increase 5 fold, even if it means having a higher bill than normal for longer.
Suppliers locked in high prices as a hedge against prices going even higher. Prices could easily have gone higher and it’s with benefit of hindsight that they didn’t.
The people charging YOU for electricity did not actually make bumper profits over the last two years, they actually struggled quite a lot.
The massive profits were made by electricity generators, who are different companies, and even when they aren’t, regulators prevent generators from subsidising the suppliers.
The reason for this is they want pure electricity supply companies to be viable in the market. You might not like the result of all this but there are actual reasons for the state of current markets and it isn’t all greed.
This is where strong governance is required but we have weak people running this country.
Every supplier should be mandated to reveal the contract length and when it came into effect.
Eh no.
They can take the hit because they made a bad investment like any other business.
Wholesale Prices drop: Sorry guys its gonna take like 6 months
Welcome to “what is making me angry today”
Ever*
Energia was a decent price last year but it seems like only Flogas have responded to the wholesale price decrease.
Consumer: “Why?”.
Company: “Because Futures.”
Consumer: “But when the price of wholesale electricity goes up, the price per unit and therefore my bills go up very quickly? Why?”
Company: “Because Futures you idiot.”
Energy futures is why
Or ever
The providers should be hauled to court. 70 dollar a barrel and 1.45 a litre of diesel at the pump, full tank under 65 euro. Even if the current rates are based on trades during the peak, they need to be accountable for the incompetence.
Disgusting. Bet they also announce record profits this year…
Of course not and our government will do nothing for us in this regard instead let’s just let the companies bleed the lower class dry.
A technologically advanced world where as the days go we depend on technology and electricity more and more. Yet if any of us opened a company that sold something like water and charged out the arse for it the government would step in immediately.
This is getting ridiculous …and will have serious political blowback too.
The summer will see a drop off in heating costs until about September / October, but the gas prices are still astronomical too, despite falling wholesale rates.
So the supermarkets get called in but god forbid these FUCKING SCUMBAGS are even remotely held accountable. Profiteering dirt.
“Up like a rocket, down like a feather.”
What’s to stop a new entrant,who doesn’t have any hedging to unwind,coming in and hoovering up hundreds of thousands of customers?
“said energy suppliers buy their energy for delivery at different times throughout the year, and sometimes up to 12 or 24 months in advance through hedging.”
Then increases should work the same way. Funny how they can put the prices up whenever they feel like it.
My bill came in last week. 4 bed, 3 kids all under 13. €357.00.
Sure, pile it on, we’re used to it!
Greedflation
This is absolute BS!
I am just curious. Can someone not sue the Minister for Energy over this. It seems like he has failed in his duties.
A call for resignation would be a nice start atleast?
Irish love gouging.
And yet nobody will protest or do anything about it, just moan and pay the bill. Smh.
Sorry pixies, but the Greens need people to pay huge energy bills each month because that will mean huge profits for energy companies which will act as an incentive for renewable energy companies to enter the market, which will help meet their stupid targets.
When are we going realise that while climate change is real, our current plans to address it are absolutely futile, and a massive act of self-harm?
Why would we be stupid enough to expect lower prices to be passed on to us? That’s not how life works in Ireland.
Costs go up: We pay more.
Costs go down: We pay more.
Tell me again why we sold off these national assets?
Shower of bastards
How is it that they only hedge high prices and not low prices?
One provider has significantly cut electricity rates. Waterpower.ie. They are currently charging 0.2428 cent ex VAT on a 24 hour meter which is a big saving over other providers. Their rates are wholesale price + management fee = cost to consumer meaning that rates drop when wholesale prices increase. Rates are not on their website. You need to phone or message them.
38 comments
Welcome to the new phase of Rip-off Ireland, Profiteering Ireland…
The idea of having a nice little self-sufficient farm somewhere becomes more attractive to me by the day.
War profiteering
Isn’t it pretty common for forwards to be bought for the energy market? I believe there was some back up for this.
So the energy we are consuming “today” was bought under a forward contract at the previous high price, because the energy suppliers couldn’t guarantee the prices would come down. So they entered forwards to mitigate the risk and now the price has come down, but they’re tied to the high price. It will trickle down later.
It’s coming
The contracts are purchased in 6month intervals
> “So wholesale prices are still over 300 per cent above what might be considered normal levels,” Mr Cassidy said.
> household electricity prices have gone up by around 100% to 150% depending on your supplier since late 2020, he said.
Hedging prevented Irish household energy bills from being up to about 5 times higher than normal. You can’t expect to both be shielded from massive spikes in energy prices but exposed to sudden drops.
I don’t like the big increases in my bills any more than anyone else, but I’d take a bill gradually doubling over having it quickly increase 5 fold, even if it means having a higher bill than normal for longer.
Suppliers locked in high prices as a hedge against prices going even higher. Prices could easily have gone higher and it’s with benefit of hindsight that they didn’t.
The people charging YOU for electricity did not actually make bumper profits over the last two years, they actually struggled quite a lot.
The massive profits were made by electricity generators, who are different companies, and even when they aren’t, regulators prevent generators from subsidising the suppliers.
The reason for this is they want pure electricity supply companies to be viable in the market. You might not like the result of all this but there are actual reasons for the state of current markets and it isn’t all greed.
This is where strong governance is required but we have weak people running this country.
Every supplier should be mandated to reveal the contract length and when it came into effect.
Eh no.
They can take the hit because they made a bad investment like any other business.
Price caps are needed.
It’s funny how that works
Wholesale price goes up: Prices immediately changed.
Wholesale Prices drop: Sorry guys its gonna take like 6 months
Welcome to “what is making me angry today”
Ever*
Energia was a decent price last year but it seems like only Flogas have responded to the wholesale price decrease.
Consumer: “Why?”.
Company: “Because Futures.”
Consumer: “But when the price of wholesale electricity goes up, the price per unit and therefore my bills go up very quickly? Why?”
Company: “Because Futures you idiot.”
Energy futures is why
Or ever
The providers should be hauled to court. 70 dollar a barrel and 1.45 a litre of diesel at the pump, full tank under 65 euro. Even if the current rates are based on trades during the peak, they need to be accountable for the incompetence.
Disgusting. Bet they also announce record profits this year…
Of course not and our government will do nothing for us in this regard instead let’s just let the companies bleed the lower class dry.
A technologically advanced world where as the days go we depend on technology and electricity more and more. Yet if any of us opened a company that sold something like water and charged out the arse for it the government would step in immediately.
This is getting ridiculous …and will have serious political blowback too.
The summer will see a drop off in heating costs until about September / October, but the gas prices are still astronomical too, despite falling wholesale rates.
So the supermarkets get called in but god forbid these FUCKING SCUMBAGS are even remotely held accountable. Profiteering dirt.
“Up like a rocket, down like a feather.”
What’s to stop a new entrant,who doesn’t have any hedging to unwind,coming in and hoovering up hundreds of thousands of customers?
“said energy suppliers buy their energy for delivery at different times throughout the year, and sometimes up to 12 or 24 months in advance through hedging.”
Then increases should work the same way. Funny how they can put the prices up whenever they feel like it.
My bill came in last week. 4 bed, 3 kids all under 13. €357.00.
Sure, pile it on, we’re used to it!
Greedflation
This is absolute BS!
I am just curious. Can someone not sue the Minister for Energy over this. It seems like he has failed in his duties.
A call for resignation would be a nice start atleast?
Irish love gouging.
And yet nobody will protest or do anything about it, just moan and pay the bill. Smh.
Sorry pixies, but the Greens need people to pay huge energy bills each month because that will mean huge profits for energy companies which will act as an incentive for renewable energy companies to enter the market, which will help meet their stupid targets.
When are we going realise that while climate change is real, our current plans to address it are absolutely futile, and a massive act of self-harm?
Why would we be stupid enough to expect lower prices to be passed on to us? That’s not how life works in Ireland.
Costs go up: We pay more.
Costs go down: We pay more.
Tell me again why we sold off these national assets?
Shower of bastards
How is it that they only hedge high prices and not low prices?
One provider has significantly cut electricity rates. Waterpower.ie. They are currently charging 0.2428 cent ex VAT on a 24 hour meter which is a big saving over other providers. Their rates are wholesale price + management fee = cost to consumer meaning that rates drop when wholesale prices increase. Rates are not on their website. You need to phone or message them.