Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
THE DEMAND FOR a reduction in the price of gas and electricity in response to tumbling oil prices is gathering momentum, with the regulator asking suppliers ‘when, not if’ the price will come down.
The chair of the Oireachtas Committee on Transport and Communication wants to bring the topic up when committees resume, planning on calling energy companies ‘to explain their position’.
Suppliers are also offering customers new products.
Oil prices are at their lowest level in several years, but aside from falling prices at the fuel pumps, Irish consumers haven’t felt the knock-on effect in their pockets.
This is due to a number of factors, including the Public Service Obligation levy, where suppliers must recoup the cost of ‘meeting the obligation to purchase electricity generated from sustainable, renewable and indigenous sources’.
Another crucial factor in some cases is that the power is bought months in advance, meaning there is a lag in any fall in price.
Gas prices are also following suit, falling significantly.
Chair of the committee, Fine Gael TD John O’Mahony, said in a statement yesterday that an explanation into the exact reason why prices aren’t falling is needed.
“Over the years we have seen our energy bills increase in direct response to increases in global oil and gas prices,” he said.
By this logic, our bills should come down when the price of oil decreases as it has significantly in recent months. However, up to this point there has been no reduction.
Speaking to RTÉ’s Morning Ireland, Commissioner for Energy Regulation Aoife MacEvilly stressed that prices are no longer being ‘regulated’, but monitored.
She said that CER has been actively engaging with suppliers who haven’t already dropped their standard tariffs.
“Our view is, at this point, it’s a question of when rather than whether they should follow suit,” MacEvilly told the programme.
Electric Ireland and Pinergy have already dropped prices. We think there’s scope out there now for other suppliers to drop their standard tariffs. If we find there are barriers, we are ready to work with suppliers to ensure there are no barriers to reducing [prices].
Other electricity suppliers were contacted yesterday on this issue.
A spokesperson for Airtricity said that an eye is kept on all costs, and if lower costs can be provided, they will be.
“Wholesale prices are volatile and go up as well as down, so we buy energy over periods of time to flatten this out and protect customers for the long term,” he added.
Bord Gáis Energy said prices are currently being reviewed, and any savings available will be passed on.
Nicky Doran, head of retail at the supplier, noted that a new ‘fixed and fall’ product had been introduced:
This allows customers to lock down their energy costs for two years. Our new fixed product also guarantees that any new price reduction implemented in the first six months of this year would also be passed on to customers.
This is the first time it has been introduced to the Irish market.
A statement from Energia said that significant discounts are already available, but if more customers switch supplier, it will ‘further market competition and help put downward pressure on prices’.
This was something echoed by CER, as MacEvilly said this will drive further market competition.
Energia also explained why prices haven’t fallen across the board:
In general, supply companies purchase power 12-24 months in advance so there is a timing lag with actual fuel price movement. It’s also worth noting that fuel costs (primarily gas) only account for an average of 25% of a customer’s bill, with other costs, including Government levies, accounting for the vast majority of the bill
Attempts were made to contact PrePayPower.ie.
To embed this post, copy the code below on your site
@Liam Byrne I’m sure if it was your job your income your mortgage payment your sons and daughters only source of "bread butter clothes and education" you wouldn’t have that same idiotic opinion. Let’s put your job on the line (if your lucky enough to have one) and see what you’d think then?
My job was put on the line and I am out of work. If it’s not financially viable to keep something running, it gets shut down. Public sector shouldn’t get special treatment.
I don’t want people to lose their jobs, but I don’t want people to be paid by the government just to keep people happy.
It’s not fair on the rest of us.
Liam that sounds like PD talk. Isn’t it gas how countries like Holland, Germany, Denmark etc, countries that have low debt, low unemployment and are still growing have responsible tax rates, world class public service from cradle to grave and would look with abhorrence at parties like the Tories and the PD’s. Countries that listen to the PD style model have chronic debt, chronic unemployment but a very small few at the top who are doing well off the tax payers back. Coincidence I think not.
Your missing the point. These guys won’t lose their jobs, they’re being relocated… At a considerable saving to the taxpayer.
That’s the problem with a lot of people in this country… Let’s cut costs and get out of this mess but not if it affects me!
lol. They are great men in opposition aren’t they. What a bunch of sham artists. The day they get in, they’ll sell it off to a developer for a kick back and turn it in to apartments.
They should put a motion in for “Duvet days” and late start Mondays as well/
Im in favour of Duvet Days!
It isn’t all that long since his own party closed Ballincollig, Fermoy, Islandbridge, Castleblayney, Kildare…
My, how it’s easier being in opposition!
You forgot Lifford!
and rockhill,
Jobs for the sake of jobs is what got this country into this situation. We don’t need them. Close them.
I suppose with mcguinness as president, most of the barracks will be relocated to south Armagh and the bogside anyway…
Fianna Fáil should table a Dail motion to recover the money all there friends robbed from this country then all the Army Barracks could remain open.
As a resident of Longford can I be the first to say
Opportunist populist nonsense
Now they want to keep them open
I hope they are the soles of Berties shoes in the photo!
The IMF is already here. Too late for defence!
Will anyone miss the Army ?
have your say