Burning wholesale costs make energy supplier increase gas and electricity prices

Flogas boss said the increase and volatility in wholesale energy costs in recent months is “unprecedented”

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Flogas’ Irish business unit has announced another increase in its natural gas and electricity prices for its domestic customers.

The new prices, an estimated 19% increase in the company’s standard rate and standing charges for electricity and a 26% increase in natural gas unit rates, will come into effect from 20th November

The price rises translate to a €5.59 (£4.72) weekly increase for natural gas customers and a €5.95 (£5.02) increase for electricity customers.

Flogas explained that the increasing demand paired with continuing outages in thermal generation plants push up the electricity supply costs.

Paul Kenny, General Manager at Flogas Energy, said: The rate of increase and volatility in wholesale energy costs in recent months is unprecedented and not something that could have been anticipated.

“While our prudent hedging policy has helped us avoid more significant increases to date, the reality is that future supply costs have increased for the next quarter by 56% from where they were only one month ago.

“We sincerely regret having to make further increases in our prices but unfortunately it remains difficult to forecast any significant improvements in the medium term.”

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