ESB increase electricity prices by 12%

If your starting to get Deja Vu your not the only one. Like a set of Dominoes, the ESB has announced that its electricity prices will rise by 12% from October 1st, just weeks after Airtricity and Bord Gais did the same.

So the idea of opening up the Electricity and Gas markets to competition simply means that we get to hear the same press statement by three companies instead of just one.

This cartel is so cosy, and Irish, it give you a warm feeling inside.....unless they have already cut off your heat and light.

FS

Inflation static at 2.7%

The annual rate of inflation to the end of June has remained static at 2.7% according to the CSO.

Prices actually fell by 0.1% but this was offset by higher interest rates on borrowing.

The national consumer agency yesterday announced that food inflation is running at 5% as the big grocery retailers seem to be more content price matching their competitors than offering real value to their customers. This has hit people hard as grocery shopping is the second largest outgoing for Irish families outside of mortgage payments.

The results may differ next month as experts agree that the ESB and Airtricity will follow Bord Gais and announce increase energy prices in the coming weeks.

FS

Bord Gais to request price increase in the Autumn

Bord Gais chief Executive John Mullins has announced that it will be seeking a double digit price increase from the Commission for Energy Regulation in July, to take affect in October.

Gas: Increase of 10-20%
Electricity: Increase of around 10%

He blamed a spike in energy prices on international markets and pointed out that wholesale gas prices had doubled over the last year. The company was no longer in a position to absorb such significant price increases and would have to start passing them on to consumers.

If you are with BG, make sure to watch the market carefully over the next few months, if its a truly competitive market, the other players will either do their best to attract customers by resisting increasing their prices...or simply coalesce to increase prices across the board. Either way be prepared to migrate your supply when the dust settles we can see who is offering the best value in the market.

FS