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LAST UPDATE | 21 Apr 2023
THERE WILL HAVE to be “further and sustained” reduction in wholesale electricity prices before consumers see a reduction in bills, an expert has said, despite the price of wholesale electricity prices being 50.5% lower than it was a year ago.
Figures published by the Central Statistics Office (CSO) today show that there has been a decrease of 8.7% in the price of wholesale electricity since February of this year.
The price of electricity was 50.5% lower in March 2023 when compared with March 2022, when the war in Ukraine began.
Despite the drastic drop in wholesale prices since this time last year, Daragh Cassidy from price comparison website Bonkers.ie has explained that it may be some time before consumers see a reduction in their bills.
Cassidy said that wholesale prices are still over 300% above normal levels.
“To put things into perspective, household electricity prices have gone up by around 100% to 150% depending on your supplier since late 2020,” he said.
He explained that energy suppliers buy their energy for delivery at different times throughout the years, and sometimes up to 12 to 24 months in advance through hedging.
Cassidy said the price households pay for their gas and electricity is usually an average price of the cost of energy on wholesale markets over the course of around a year or two.
“This is to ensure security of supply and to try ensure households aren’t faced with extreme swings in the price of their energy on a weekly or monthly basis,” he said.
So you can’t really try a direct line between the wholesale price of energy on a given month and retail prices.”
Cassidy said consumers will “need to see a further and sustained reduction in the price of energy on wholesale markets before we can talk of smaller bills for consumers”.
He noted that 2023 shouldn’t see further gas or electricity price hikes.
“I’m hopeful, if the current trend continues, we might see some small price decreases in the second half of the year,” he said.
“However, any further escalation of the war in Ukraine could put upward pressure on prices again,” Cassidy said.
“As could a calm, very warm summer. A good summer would usually mean less wind output which wouldn’t be good for electricity prices. And if there is an extreme heatwave on the continent, leading to drought conditions, this could impact hydro plants and nuclear plants which in turn would then indirectly affect us.”
The CSO figures released today also showed that domestic producer prices for manufactured goods were on average 9.2% higher in March 2023 compared with a year earlier, while producer prices for exported goods increased by 1.1%.
Producer prices for food products rose by 5.2% in the 12 months to March 2023, while the food products, beverages & tobacco index also saw an increase of 5.2%.
Some of the most notable changes in producer prices for food products over the 12 months to March 2023 were: Fruit & vegetables (+18.2%), fish & fish products (+17.5%), dairy products (+15.4%), and grain, milling, starches & animal feeds (+11.6%).
The most notable changes in other producer prices in the year were: Other non-metallic mineral products (such as glass, ceramics, cement, concrete and stone) (+17.8%), wearing apparel (+8.8%), wood & wood products (+7.5%), and furniture (+7.3%).
Wholesale prices for construction products decreased by 0.1% in the month but increased by 13.5% in the 12 months since March 2022.
So we know this. The electricity suppliers know this. Our government knows this. It’s in the news, EVERYBODY knows this. So why in the name of God are we still paying more than 100% more than what we were paying this time last year? I know the answer, just putting it out there.
@Alan Farrell: Switch!
@David Terry: I have everything SWITCHED off all day! It doesn’t make a difference to the bill David!!!!!!!!!!!!! :-)
@David Terry: I do every year! Just checked Bonkers to compare mine, only two offers came up. Just two. And they were for a Pre Pay crowd. It’s a complete joke.
@David Terry: switch to who? They are all gouging.
@Alan Farrell: Greedflation it’s called.
@David Corrigan: deffo does. Less expensive if everything is off
@Alan Farrell: You need to toggle the ‘only show offers available for sign up’ to No. You will then see all the offers in the market. You likely won’t be able to sign up through Bonkers, but can find the best offer out there and contact the supplier directly to sign up.
@Alan Farrell: Because the electricity supplied this time last year would have been bought on the wholesale market mostly in summer/autumn 2021. Similarly the prices we are being charged now are based on wholesale prices from summer/autumn 2022. They’re the prices to compare. I’m guessing prices would have spiked a lot higher this winter if suppliers hadn’t bought on the wholesale market in the summer/autumn
@David Corrigan: Wake up! Turn back on the alarm! Change Suppliers = Switch!!!°
@David Terry: The point is that as consumers, you shouldn’t have to continue switching to avail of competitive pricing. It’s the same with TV providers. Bills go up – you then have to go through the effort of ringing around and threatening to leave to get a legacy discount. It’s now nothing more than gouging. Profits are soaring, so they have a new profit base to grow on. And the consumer suffers.
@Mark Reilly: I leave my house in the same state every morning religiously and the ESB bill keeps increasing. How is the name of God is that?
@David Terry: I switched from Electric Ireland to Bord Gais and my Electricity bill was × 6.5 times higher with Bord gais.. I have investigated it and my smart meter bill is estimated because Bord gais didn’t ask for the Data from the Data centre in the 3 months I was with them and I changed back to Electric Ireland and the same problem..if they don’t get the data then the bills are estimated there’s no point in phoning and waiting for a reply then put on hold again and again. Electric Ireland Gas bill is gone up from €170 this time last year to €1000+ and they can’t give me an answer as to why..
My house has been retrofitted and renovated at a cost of €100.00 ,ten years ago and my bills were very low for 10 years until I switched.
@David Terry: switch !! …good one :-)
@Alan Farrell: and they up the prices in nano seconds. Nothing to be gained by switching anymore… have switched a few times.
@Jason Ebbs: bad for me
@David Terry: oh they love you don’t they!
@Alan Farrell:
Because most consumers haven’t heard about plug-and-play PV power.
They are kept in the dark.
Here in Ireland we are allowed to install our own PV system up to 6kW, the EU has changed legislation and allows since June last year for 10.8kW DIY installation.National regulations can go to 50kW DIY … (Directive (EU) 2018/2001 )
A first class PV panel of 400W costs in Ireland some € 150.- and will deliver for decades, for generations.
@Gareth Keenan:
Not true.
Prices for home made power came down sharply since last year March.
A PV panel of some 400W costs only € 150.-
@Alan Farrell re. Bonkers price comparison:
Bonkers does not allow to include the FIT for home made power.Work this in yourself and you’ll see a dramatic price drop.
Legalised theft. Even if the price comes down the ESB are on a winner with the standing charges. The fact of the matter is every CEO in every little corporate entity in the country, want a yearly Lotto sized salary, just like the recent RTE appointee, and that isn’t going to change.
It would be funny if it wasn’t so serious
Quick question, if some energy suppliers are buying up to 12 and even 24 months in advance through hedging, why are none of them charging pre war prices ?
@Sean Higgins:
Because before the war the prices were already sharply going up.See the article in the Examiner ” “French nuclear faults send gas prices to new record, but Omicron-affected shares gain on investor hopes” .
The situation in France is getting worse, see Bloomberg “French Winter Power Twice as Pricey as Germany’s on Nuclear Woes”.
Somebody is coining it in
@Tom Kelly: Yep stealing from the poor to give to the rich. Total opposite to Robin Hood.
And still…
Won’t drop here for another 4 years or so
@Nollaig Kelly: it will never drop look at the petrol stations already putting it up before the tax is added again
@Nollaig Kelly:
Probably.
See Examiner article ” “French nuclear faults send gas prices to new record, but Omicron-affected shares gain on investor hopes”.
Once the interconnector is built the colonilists will bleed out Ireland.
Why is it that they put up the price of electricity and gas the month its goes up but they buy the gas a year earlier on futures, but when it falls it takes a few years to out the price down
Tough month ahead. My Estimated bill is around 130 euro up on previous year . And no assistance.
Plus interest rates hike.
Roll on warm Summer and bbq..
So if the energy companies can pre buy in advance through “hedging” why can we not do the same when prices are low ?? Cause that would be fair that’s why and energy companies don’t do fair
The government need to get their finger out and do something about the crazy cost of living. Daylight robbery by electricity providers and supermarkets and the government isn’t doing a thing about it. There will be a revolution soon, because people can’t live like this.
@Teresa O’Halloran:
I agree with your point, but I see no revolution because the majority of people are still comfortable and the media and governments have demonised protesters over recent years.
They’ll push people to a tipping point, then pull back just in time.
@Jack Cronin: sadly I think you are right. France we are not!
@Teresa O’Halloran:
France has the highest electricity prices in Europe.
See Bloomberg
” French Winter Power Twice as Pricey as Germany’s on Nuclear Woes”
and L’Echos
” La France redevient le pays européen où l’électricité est la plus chère”
and BMTV
” L’hiver n’est pas encore là mais l’électricité française se vend déjà plus cher qu’ailleurs “
Electricity supply companies the world over are making mega profits in the multi billions yet price hikes when it goes up and nothing when it goes down…
@Asid Howz:
EdF is bankrupt, see the Guardian
” France to pay nearly €10bn to fully nationalise EDF “
This is what happens when a government doesn’t care about its citizens and allows criminals in suits get away with robbery.
Price gouging and scaremongering at its best. Securing future power on a contract or we can’t promise delivery. The consumer gets rode from every angle always end of story. Electricity that is used right now is genorated right now. Immediate price increase when putin went in, now it takes two years to come back down. Large scale industry wins. Big surprise
@Vinny Clare:
You do not understand the electricity market.Prices went up because of atom power, see the Examiner
” French nuclear faults send gas prices to new record, but Omicron-affected shares gain on investor hopes ”
and Bloomberg
” French Winter Power Twice as Pricey as Germany’s on Nuclear Woes”
The consumer can be a prosumer, prices for PV went down by ca. 50% since last year March.
The gall of the energy dude on the news sayin energy companies are braking even at best and some aren’t making a profit. When we’ve already seen official numbers of their profits being up billions on precious years. They also say the price will be high coz the buy in advance. Yet when the war kicked off they put up the prices straight away. They get away with all this coz they aren’t regulated properly and a neoliberal government allows private markets to set prices. We pay double the EU average for energy bills. It’s crazy how this country is ran.
@Яob Gale: what’s even worse is, given this was all kicked off by Putin’s war, this price gouging equates to war profiteering (which was condemned decades back) but nobody is calling them on this (for what it is)
@Яob Gale:
” Yet when the war kicked off they put up the prices straight away. ”
Please link to this, thank you.
See the article from the Examiner ” French nuclear faults send gas prices to new record, but Omicron-affected shares gain on investor hopes “.
Good luck with your conspiration theory :)
Don’t forget our government are loving the higher tax take on the inflated prices. If you are wondering why they aren’t bringing them down, that is why.
@Edward Reid:
The tax on PV equipment and installation is reduced to Zero.
The company I work for consider it a “loss” if they don’t clear a 20% profit on the job after bills are paid.
I think one of the biggest consequences of this is that people become bitter at the system when they feel they’re being used financially and stop doing the good things they were doing for society before this stuff became apparent.
Understandable I suppose.
So wholesale electricity goes up.We get those straight away. The go down we dont get them straight away.
@Mike Hogan:
The French atom power plants are still down, I’m not allowed to link to the Examiner article from Thu, 16 Dec, 2021 – 15:55 with the headline “French nuclear faults send gas prices to new record, but Omicron-affected shares gain on investor hopes”
and to head line of the 19th of April 2023 from Bloomberg with the headline “French Winter Power Twice as Pricey as Germany’s on Nuclear Woes”
and to the BFMTV headline from today ” L’hiver n’est pas encore là mais l’électricité française se vend déjà plus cher qu’ailleurs”
Energy is traded years ahead ,Irish lecky ca 18 month.
With the absence of links a useful discussion is not possible in the www.
Best with your conspiration ideas.
So 12/24 months ago how much did they buy at wholesale??
@Will Roche:
Since links are not allowed see the Examiner head line “French nuclear faults send gas prices to new record, but Omicron-affected shares gain on investor hopes” .
And Bloomberg’s ” French Winter Power Twice as Pricey as Germany’s on Nuclear Woes ”
Do you mean with “how much” the TWH purchased by traders?
Why are the government not putting an immediate action plan in place to stop this day light robbery of users
@John O Mahony:
They make sure it works at night time as well.
A simple solution is for the government to hit the electricity suppliers with a windfall tax for the enormous profits they have made over the last year, and use that to compensate consumers until prices are fair again!
@Nestor:
Would you do this with the arms industry as well?
Its all part of Eamon Ryans master plan to keep energy costs sky high in order to get us to use less. God help people who put heat pumps in to an older house, they been sold a lie. At the same time friends of FFG a being given a free pass to rip us off.
Great news, the moanbags wont be happy!
@David Terry: It’s only great news if the bills start to come down for households are quick as they rise.
How can they not pass on price reductions as soon as they receive them? They were quick enough to ramp the prices up! They could pass those on fairly lively alright!
re ” How can they not pass on price reductions as soon as they receive them? They were quick enough to ramp the prices up! They could pass those on fairly lively alright!”
They can if you sign a contract which allows for this.
The prices for home-made electricity have dropped by about 50%
An A-tier PV panel (best quality) of 400W costs now some € 150.- and will deliver for many decades, generations.
Hello,
a question to the price comparison site manager:
Why is Bonkers not including the FIT for home made electricity in their algorithm?
have your say