No drop in energy bills despite fall in cost of gas

It could be months before Irish households see a reduction in their energy bills, despite the price of wholesale gas falling to levels before the Russian invasion of Ukraine. 

However, households will have to wait months for electricity and gas prices to fall as many energy suppliers lock in at wholesale prices, months in advance.

While consumer energy prices are not expected to fall this year, they will stabilise, a range of experts have said.

News of the gas price drop will certainly be welcomed, it will be tempered greatly by the fact that no price reductions for hard-pressed households are imminent. 

It is estimated that the yearly cost of electricity for a typical household is now €2,000.

The fact that wholesale gas prices have dived on international markets had lead to consumers believing that it would also lead to price cuts.

Wholesale gas generates around 50 per cent of the electricity used in this country.

In the meantime, business have urged to avail of Temporary Business Energy Support Scheme (TBESS) which provides qualifying businesses with up to 40% of the increase in electricity or gas bills up to €10,000 per month or €30,000 in certain cases.

Minister for Finance Michael McGrath has urged businesses to continue to make claims before the first deadline expires.

"Businesses should be aware that the window for making claims in respect of September 2022 will close at the end of this month, so it's important to complete that claim in the coming days," he said.

The scheme is due to expire at the end of February and no decision has been taken yet on whether it will be extended.