Energy provider Flogas is to increase its variable electricity charges by about 7 per cent from later next month.
The hike comes into effect from August 25th, and residential natural gas customers are unaffected by the change.
For a typical Flogas residential electricity customer, the changes will mean an increase of around €10.51 a month or €126 annually.
Residential electricity customers on fixed rates are unaffected. The company said this is its first price increase in three years and follows a 15 per cent reduction in its electricity rates last year.
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Flogas has 43,500 residential electricity customers on variable rates.
Sean O’Loughlin, managing director of Flogas Energy, said: “While we understand that any price change can be challenging for our customers, this announcement reflects a 21 per cent increase in network charges introduced in October 2024, with further increases anticipated in October 2025.
“We will support affected customers through our customer service team as much as possible and have a range of options, including payment plans, Budget Plan and prepayment meters. We would ask any Flogas customer who is facing financial pressure around their energy bills to contact us.”
Mr O’Loughlin added the company is encouraging customers who are not on a discounted contracted price plan to contact them, “as significant discounts are available”.
Bonkers.ie, the supplier comparison and switching site, said although wholesale energy prices have reduced hugely since the height of the energy crisis in 2002, they still remain high.
It said wholesale electricity prices remain about 80 to 90 per cent above the level they were at before the war in Ukraine broke out.
“It’s similar for gas and it’s looking increasingly likely that they’ll never return close to pre-war levels,” it said. “On top of this, costs for the upkeep of the electricity grid in particular keep on rising.
“Around 30 per cent of the price we pay for our electricity and gas goes to EirGrid and ESB Networks, and Gas Networks Ireland for the upkeep of the electricity and gas networks respectively,” Bonkers said.
“Households don’t see these charges on their bills as they’re incorporated into the unit rate as well as the standing charge that we all pay. But these costs have been increasing over the past few years.”
