A sign that normality may be at least starting to return to the domestic energy market has emerged with news that Flogas is to become the first supplier to offer a fixed-price energy deal to Irish consumers in almost three years.
The step comes at a time of huge volatility and soaring prices in the energy market that has seen consumers hit with multiple price increases over the past two years, more than doubling the cost of a typical household bill.
While fixed energy deals are relatively common in most other countries, the last fixed deal to be offered in Ireland was in early 2020, from Budget Energy and Iberdrola, which have now both left the market.
Flogas is now offering a fixed unit price for gas, electricity and dual fuel for both new and existing customers. The standing charge is also fixed.
Are you in a mortgage switching sweet spot? If so, you could save thousands
New health insurance company backed by Aviva claims it can offer ‘meaningful savings’
Election 2024 poll: Support for Independents jumps but Fine Gael remains most popular party
Hybrid working gains made during pandemic must be protected, Fórsa election document says
On top of this, Flogas is offering €300 welcome credit to everyone signing up to a dual fuel plan. A €150 welcome credit is offered to those who sign up to a gas or electricity plan only.
“It’s been a tough time for energy customers as we all know,” said Daragh Cassidy, head of communications at bonkers.ie. “Given all the uncertainty, many households have been asking for fixed energy deals where they’re guaranteed a price for their gas and electricity for a year or so. However these haven’t been available in recent years until now”.
He said fixed deals “can offer certainty to households and help with budgeting. And the ones from Flogas are good value (if you could use that word in today’s market).”
He noted that fixed energy deals tend to be more expensive than variable energy deals with people paying for the certainty of locking in a price for an entire year. “However most households who use an average amount of gas and electricity will find these deals among the cheapest in the market right now.”
Mr Cassidy said such a deal “may not be suitable for everyone but it’s good to see consumers now have the choice. Though it’s wise to do a full comparison of the entire market before making a choice.”
He did point to a downside that would see the a consumer paying above the odds if the prices of gas and electricity fall during a contract.
“No one can say for certain how energy prices will pan out over the next year or so. Although wholesale energy prices have eased slightly in recent weeks, the outlook is still very uncertain.
“Indeed in December the wholesale price of electricity in Ireland shot up again by over 90 per cent compared to the previous month having fallen for a few months in a row. So this is a risk consumers have to weigh up.”
