Flogas has become the latest energy supplier to announce an increase in prices for residential customers. There will be an 18% increase in the Flogas standard rate and standing charges for both natural gas and electricity from September 18.
The increases will mean a €3.28 weekly increase (incl. VAT) for natural gas customers and €4.75 a week for electricity customers (incl. VAT). The electricity cost increase will be partially offset with reductions in the PSO charge by €2.22 per month from October 1.
The energy supplier blamed the increases on the rise in global wholesale energy costs.
Flogas said, every month has brought incrementally higher wholesale electricity prices since March, the highest since the new Single Electricity Market commenced in October 2018.
It said it is likely that higher than usual prices are likely to continue for some time. It said significant long-term unplanned outages of large electricity generation plants on the island, combined with increasing global commodity and carbon emission costs, are forcing prices up.
Paul Kenny, general manager, Flogas Energy, said: "Energy costs, and in particular electricity wholesale costs in Ireland, are at unprecedented levels right now with no signs of reducing in the medium term. While the monthly PSO reduction from October 1 will be of some financial assistance to householders, we are very concerned about the fundamental challenges facing the marketplace that need to be addressed to avoid further pricing impacts.
"We regret having to make further increases in our prices this year. However, they are necessary due to the same rising wholesale costs that have affected all suppliers. We are keeping our prices as competitive as possible for our customers and will be continually reviewing as the market changes. However, it is difficult to forecast any significant improvements in the medium term."