There are fears the 7pc price rise from Flogas could be echoed by other energy providers, with no Government energy credits on the way for households this winter
From Monday, 45,500 Flogas residential electricity customers will be hit by a price rise of around €10.51 a month, adding €126 to annual bills.
Experts have warned that more energy companies could raise their prices.
The Government has ruled out any further energy credits this winter, after the credits helped to ease the energy cost crisis for the last three years. But more than 300,000 households are still in arrears on their electricity bills.
The CSO said wholesale electricity prices had risen by 4.6pc in the month to July. They were 10.3pc lower than July last year.
Wholesale electricity costs have fallen by 74pc when compared with the peak which occurred in August 2022.
But experts have said wholesale electricity costs remain well above where they were before Russia invaded Ukraine.
Daragh Cassidy, of price comparison site Bonkers.ie, calculated that wholesale electricity prices were now just under €100 per megawatt hour (MWh).
This was well above the €40 to €50 per MWh level that was normal in the years before the war in Ukraine, he said.
“So there won’t be any fall in energy bills for households any time soon, unfortunately.”
Mr Cassidy said wholesale prices make up only half of the final cost of electricity for consumers.
“Government taxes and levies, costs for the transport of electricity into people’s homes, such as network fees, supplier operating costs and profit margin, also need to be factored in. And some of these costs are likely to increase in the near term.”
Rising electricity prices could put extra pressure on households this winter. Photo: Getty
Mr Cassidy said that in the next week or so, the energy regulator was likely to propose another increase in network fees for the upkeep of the electricity grid.
Last year, the Commission for Regulation of Utilities (CRU) hiked fees which worked out at just over €100 a year per, with further increases also likely over the following years.
“It’s up to individual suppliers to determine how they pass on any increase in grid or network fees,” Mr Cassidy said.
“They can absorb part or all of the hike themselves, increase their prices, or reduce their prices by a lower amount than they otherwise would have.
“But the upward pressure on grid fees, coupled with wholesale prices which remain stubbornly high, mean the outlook isn’t great for those hoping for lower energy bills.”
Last winter, the Government paid two energy credits to households, worth €125 each. The credits, coupled with substantial social welfare support, had helped shield customers from high energy costs, Mr Cassidy said.
“So this lack of support means we’ll all be paying more for our energy this winter. As a result, it’s imperative that households switch supplier to ensure they’re on the cheapest tariff possible.”
Eoin Clarke, an energy expert at another price comparison site, Switcher.ie, said Flogas electricity customers would be hit by a 7pc price hike from Monday.
Flogas blamed higher network charges approved by the regulator.
Mr Clarke also warned that rising infrastructure charges could start driving up prices.
“The concern is that the Flogas announcement is a bellwether for the wider Irish energy market,” he said. “Given that network charges affect all suppliers, industry experts are anticipating similar price increases from other suppliers in the coming weeks and months.”