Bord Gais announce massive price hikes coming in April

Bord Gáis Energy has announced it is increasing its rates for both electricity and gas customers.

According to a statement from the company released today, the average electricity bill will go up by 27% and the average gas bill will go up by 39%.

The company is ending its 'winter price pledge' and the changes will take effect from 15 April.

The company said it was working with the Money Advice and Budgeting Service (MABS) and is also establishing an energy support fund to help customers who "experience difficulties in managing their bills".

Bord Gáis Energy blamed the price rises on "the persistence of high demand on gas worldwide, reduced supplies, low storage volumes, geo-political issues and late winter conditions".

"As part of Centrica plc, and with decades of local experience, we will navigate through these unprecedented times with our customers," Dave Kirwan, Managing Director with Bord Gáis Energy, said in a statement.

"However, there have been continued increases in wholesale energy costs over the past two years, particularly in the past 12 months.

"This, together with the expectation that costs will remain both high and volatile for some time, means we are forced to increase our prices," he said.

Daragh Cassidy, Head of Communications at bonkers.ie, said today's move by Bord Gáis is sadly unsurprising given the huge increase in the price of gas seen on wholesale markets in recent months.

But he said the size and scale of the increase is unprecedented.

Bord Gáis raised electricity prices three times last year and gas prices twice.

"It's the first price hike announcement from any energy supplier this year. Last year, there were over 35. And more suppliers are certain to follow. The outlook is bleak for energy customers," Mr Cassidy said.

He estimates that the increase will add around €350 a year to the average household’s annual gas bill and €340 to the average annual electricity bill.

But he said the latest increase this comes on the back of price hikes that have added around €540 to customers' gas and electricity bills since the autumn of 2020.

"Energy price increases of this size will invariably have huge knock-on effects in other sectors. We use gas to produce most fertiliser for example and there are now fears of a huge increase in food price inflation over the coming weeks," Mr Cassidy added.

More to follow