ENERGY SUPPLIER FLOGAS has announced an increase of around 7% in its electricity charges, starting next month.

For a residential electricity customer, the changes will mean an increase of around €10.51 a month, €126 annually.

It will take effect from 25 August.

Residential natural gas customers are unaffected by the change.

The company defended the increase, pointing to the hike being its first price increase in three years. Flogas had reduced its rates by 15% last year.

Sean O’Loughlin, managing director of Flogas Energy, said the increase was in part due to increase in netowrk charges which are set by the Commission for Regulation of Utilities to maintain netwworks. 

“While we understand that any price change can be challenging for our customers, this announcement reflects a 21% increase in network charges introduced in October 2024, with further increases anticipated in October 2025,” he said. 

“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 pre-payment meters. We would ask any Flogas customer who is facing financial pressure around their energy bills to contact us,” O’Loughlin added.

The increases kick in from next month. Alamy Stock Photo Alamy Stock Photo

Flogas said it encourages all customers to ensure they are on a discounted contract, and where they have a Smart meter installed, to switch to a Flogas Smart Tariff.

Market analysts Bonkers said that while wholesale energy prices have reduced since the height of the energy crisis caused by the war in Ukraine in 2022, they still remain high. It noted that wholesale prices remain around 80 to 90% above the level they were at before the war broke out.

“On top of this, costs for the upkeep of the electricity grid in particular keep on rising,” Darragh Cassidy of Bonkers said on the increases.

“Around 30% 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.

“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.”