‘We’re being f leeced on energy’

WHOLESALE energy prices have dropped by almost 47% in a year, and are down by 78% since their peak in August of 2022.

But consumer prices have fallen by only 20% to 25%, leading Michael Kilcoyne, chairman of the Consumers’ Association of Ireland, to accuse electricity suppliers and the Government of ‘fleecing’ households.

‘We are being short-changed,’ he said. ‘The industry and the Government, with its VAT and other levies on electricity, are taking us for fools. Consumers are being fleeced.’

Wholesale figures provided by the Central Statistics Office show that energy prices have fallen by 15% during the month of February alone.

Daragh Cassidy, head of communications at switching website Bonkers.ie, said price hedging by energy companies meant that it took time for price decreases on wholesale markets to feed through into lower bills for customers.

He also said that wholesale prices make up only around half of the final cost of electricity for households.

Government tax and levies, the cost of the distribution of electricity to people’s homes, and supplier operating costs and profit margin also need to be factored in, Mr Cassidy said.

‘If wholesale prices remain close to where they are, then it’s highly likely we’ll see another round of price cuts in the second half of the year of between 10% and 20%,’ he said.

‘This comes on the back of two rounds of price cuts over the past six months that have seen electricity bills fall by around 20% to 25%.’

But Mr Cassidy warned customers not to get too optimistic just yet.

He said: ‘However, even after this third price cut – presuming it happens – electricity prices would still be around 50% to 60% higher than what would, until relatively recently, have been considered normal levels.

‘So even though the worst of the energy crisis has thankfully passed, we’re still a long way from a return to “normality”, whatever that may end up looking like,’ he added.