Wholesale electricity prices were two-thirds higher in January than they had been at the same time last year, reaching their highest level in more than two years, new data from the Central Statistics Office (CSO) shows.
The latest Wholesale Price Index shows the cost of electricity jumped 22.3 per cent in just one month from December, though they remain lower than the post-Ukraine invasion peak in August 2022 by 56.8 per cent.
The price index for all energy fuels rose by 6.3 per cent in the month, and was up by 2 per cent in the year since January last year. The overall energy products index was up by 18.6 per cent since December and was 48 per cent higher when compared with January last year.
Daragh Cassidy, spokesman for price comparison group Bonkers.ie said the increases were mainly due to higher wholesale gas prices, which rose to around three times pre-energy crisis levels.
“Colder than average weather at the start of the year which increased energy demand, the end of the Russia-Ukraine gas transit deal and a drop in EU gas storage levels all helped push back up the price of gas,” he said.
Mr Cassidy said provisional figures for the first half of February show wholesale prices remain at a similar high level.
“Unfortunately, any chance of a reduction in household electricity prices, which remain around 70 per cent to 80 per cent above pre-war levels, looks remote in the short to medium term,” he said.
“Even if wholesale prices do ease over the coming months, any reduction is likely to be largely wiped out by a rise in fixed electricity costs or grid fees.”
Mr Cassidy said the cost of upkeep to the electricity grid is also likely to mean more pain for consumers.
“Last August, the CRU sanctioned an increase in grid fees that were the equivalent of around €100 per household, and it’s almost guaranteed to sanction another increase later this year,” he said.
“It’s up to individual suppliers as to whether these fees are passed on to households. All suppliers absorbed last year’s hike as wholesale prices had fallen significantly at the time from their record highs. But I’m not so sure they’ll be able to do so again this year.”
He added consumers should “seriously consider” switching energy supplier. “Anyone on standard rates will be paying around 35 or 36 cent per kilowatt hour including VAT for their electricity at present,” he said. “But rates under 25 cent are on offer from some suppliers to new customers for a year, which equates to a saving of over €400 a year for the average household.
“It’s a huge difference, and it’s similar for gas.”
Overall producer prices for products sold on the domestic market were 1.4 per cent higher in January over 12 months, while export producer prices and overall producer prices were each up by 2.1 per cent in the year.
Within that, wholesale prices for construction products edged up by just 0.1 per cent in the month and by 1.3 per cent over 12 months.
The price of concrete blocks and bricks was up 8 per cent, while the cost of sand and gravel climbed 7.7 per cent. The cost of other structural steel rose 6.1 per cent, while the price of cement increased by 5.7 per cent. However, the cost of reinforcing metal came down by 8.8 per cent.
On food products, producer prices increased by 7.6 per cent over the 12 months, while the food products, beverages and tobacco index was up by 6.4 per cent.
