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Flogas Energy Price Announcements October 2021

Flogas Energy Price Announcements

 

Following months of historically high wholesale energy costs, as well as continuing market supply cost issues specific to Ireland, Flogas must announce further residential natural gas and electricity price changes.

With effect from 20^th November 2021, there will be an 19% increase in the Flogas standard rate and standing charges for electricity, and a 26% increase in natural gas unit rates and standing charges. All electricity supplied comes from 100% renewable sources.

Increasing demand for electricity, combined with continuing outages in thermal generation plants have put significant upward pressure on electricity supply costs. In the wholesale gas markets there has been a further deterioration in the medium-term costs of gas, driven by continuing global demand and uncertainty of supply.

The increases will mean a €5.59 weekly increase (incl. VAT) for natural gas customers and €5.95 a week increase for electricity customers (incl. VAT).  Details of the price change will be included in gas and electricity bills from 20^th November 2021.

Paul Kenny, general manager, 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. We are continuing to work hard to keep our prices as low as possible for our customers and will be continually reviewing our rates as the market changes,” Kenny continued.

Flogas is committed to supporting any of its customers who are having difficulties with their energy costs over the coming months.  Customers can contact the Flogas customer service team who will treat their case sensitively and in confidence.

The impact on Estimated Annual Bills (EAB) for standard rate residential customers from 20^th November 2021

	Current (ex vat)	From 20/11/21	Current incl VAT@ 13.5%	From 20/11/21 incl VAT @ 13.5%
		ex Vat
Natural Gas	€1,051.86	€1,308.07	€1,193.86	€1,484.66
Electricity
24hr Urban	€1,479.78	€1,751.09	€1,679.55	€1,987.49
Night saver Urban	€1,334.54	€1,578.35	€1,514.70	€1,791.43
24Hr Rural	€1,528.80	€1,809.42	€1,735.18	€2,053.69
Night saver Rural	€1,413.38	€1,672.16	€1,604.18	€1,897.90

Gas EAB is based on a customer using 11,000 kwh per annum and Electricity EAB is based on a customer using 4.200kwh per annum as per the Commission for Regulation of Utilities, (CRU),

Prices are shown rounded for presentation purposes. Prices may vary during the customer’s contract.