FLOGAS ENERGY HAS announced that both gas and electricity prices are set to rise by almost 30% in May.

It comes after a number of other energy companies, such as Bord Gáis and Electric Ireland, also announced price hikes due to a volatile energy market.

Flogas said it will increase its residential electricity prices by 27%, which would equate to an additional €520.87 per year for customers on the company’s 24 hour urban rate, and an additional €538.75 per year for those on the 24 hour rural rate.

Gas prices are set to rise by 29%, which would equate to an additional €408.62 per year to the average customer’s gas bill.

Both of these increases are set to come into effect on 7 May.

The company said the price increases are due to “the unprecedented and sustained rise in wholesale gas prices and the associated rise in wholesale electricity costs”.

“Wholesale costs have continually increased in the last 12 months. The escalating geopolitical situation is adding to the pressures already existing in the Irish and European energy markets. Prices are remaining high and increasingly volatile, with little sign of improvement in the medium term,” it said.

In a statement, general manager of Flogas Paul Kenny said that all Irish energy suppliers are being faced with the same rising wholesale cost increases.

“While we have worked hard to minimise and delay price changes during the winter months, we now regrettably need to reflect the increased costs in our prices,” he said.

“We are contacting our customers to advise of the change and give advice and support on how to reduce their costs into the future,” he said.

Kenny said the firm sincerely regret the increase in its prices. “We are keenly aware of the impact being felt by households across the country, and our Customer Service teams will be supporting affected customers as much as possible,” he said.

“But, as an energy supplier, it is now critical that we help and support our customers to make changes to their use of energy to reduce their bills and support a greener, more sustainable future.”

Reacting to the news, head of communications at price comparison site Bonkers.ie Darragh Cassidy said that while this is the first price increase of the year from Flogas, it is a big one that will add a huge amount to customers’ bills. 

“The latest price hike will add around €500 a year to the average customer’s electricity bill and over €400 to their annual gas bill,” he said.

He also pointed out that Flogas increased its gas and electricity prices four times last year.

“When all price increases over the past year or so are taken into account, Flogas customers will be paying over €2,200 more for their gas and electricity each year,” he said.

Cassidy said today’s news had been expected given the “skyrocketing cost” of gas on wholesale markets.

“Flogas has also announced significant increases to the daily standing charge for gas and electricity customers, the scale of which seems difficult to justify,” he added.

“Flogas customers will now be hit with a standing charge of over €380 a year for electricity and around €250 a year for gas. So it’s a significant sum to pay before you’ve even turned on the heat or the kettle.”

Last week, Electric Ireland said it will increase its electricity prices by 23.4% and gas prices by 24.8% from 1 May.

Bord Gáis Energy said last month that its average electricity bill will go up by 27% and the average gas bill will go up by 39%, while SSE Airtricity and Energia also recently announced price hikes.