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Flogas hits consumers with third price hike this year

Flogas is increasing the amount it charges for natural gas and electricity by 18pc in the third of a series of price hikes it is imposing on customers this year.

he energy supplier, which is owned by listed conglomerate DCC, said this morning it would put up prices from September 18 to reflect higher wholesale costs.

The average natural gas customer will now have to pay an extra €170 per year while the average electricity customer will pay €247 more weekly.

The company said higher input costs were set to continue for some time and improvements in prices for consumers were not likely in the medium term.

“Energy costs, and in particular electricity wholesale costs in Ireland, are at unprecedented levels right now with no signs of reducing in the medium term, said Paul Kenny, general manager of Flogas Energy.

“We regret having to make further increases in our prices this year. However, they are necessary due to the same rising wholesale costs that have affected all suppliers.”

Energy suppliers across the market have been increasing their prices this year, with many putting through two price hikes already.

In April, almost all the country’s energy suppliers increased their prices. Flogas, Pinergy, Panda Power and Iberdrola have all raised their prices for a second time.

Last month Bord Gáis Energy announced its second price rise this year. Electric Ireland also said it would raise prices again starting this month.

Wholesale electricity prices have trebled in the last year and are at their highest level since the single electricity market was introduced in October 2018.

The higher input costs for energy mean providers need to charge customers more to maintain their profit margins.

According to Eurostat, electricity prices in Ireland are already above the EU average and the fourth most expensive in the 27-nation EU. Gas prices are the seventh most expensive.

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