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Eamon Ryan warns of two years of high energy bills

All-Electric Bus
/ 14th December 2022 /
BP Reporter

Households could see their energy bills rocket by up to 50% due to the current cold snap, with temperatures likely to plunge to -7C tomorrow night.

Freezing conditions are set to continue over the next few days, with a status orange low temperature warning for most of the country tonight.

It comes as Energy Minister Eamon Ryan warned that people are likely to be stuck paying high bills for the next two years.

As households depend more on indoor heating, Eoin Clarke, commercial director of Switcher.ie, warns that the period after Christmas will be the "most difficult period energy customers in Ireland have ever encountered in terms of high costs".

He said: "If energy consumption has gone up in the house, that's going to affect consumers' bills.

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"If it's really cold and people are working from home or staying at home, they possibly have the heating on for longer. That's going to have a big impact on their bills."

Mr Clarke estimated that, while households vary, the next average energy bill could be up to 50% higher than four months ago.

"The next bill that comes in over the Christmas period could be the largest bill," he said.

Green Party leader Mr Ryan said yesterday that energy prices will stay high for the next two years.

The Government has had to move several times this year to provide credits to people struggling with their energy bills, with the first credit coming in April this year, and another three announced at budget time.

Energy prices have rocketed due to the war in Ukraine and the weaponisation of gas prices by the Russian government.

Speaking at a press conference yesterday, Mr Ryan said: "My expectation is, unfortunately, for the next year or two years we are not going to see significant reduction in electricity or gas prices. That's the expectation across Europe. If the war was going to end you might see some differences, but the prospect of that is very remote."

energy bills
Energy Minister Eamon Ryan warned that people are likely to be stuck paying high bills for the next two years (Pic: Getty Images)

Mr Ryan said about 200,000 people are in arrears on their electricity bills and a slightly smaller number in arrears on their gas bill. Speaking about the energy credit in April, he said this led to 90,000 fewer householders in energy arrears, calling it a "particularly" beneficial mechanism.

The Minister also said most of the hikes in gas prices are now built into bills, and he didn't think there would be increases other than those already factored in.

Asked if the Government would put in place more energy credits in the new year, given the likelihood that prices would stay high, Mr Ryan said: "We will review in spring or summer in terms of any additional measures."

However, it is increasingly likely the Government will have to move to help people cover the cost of their bills again next year if the expectation is that energy costs will remain at such high levels.

Mr Ryan also said the Department of Social Protection would be working over the Christmas period to help households at risk. They would be working alongside the St Vincent de Paul and the Money Advice and Budgeting Service (MABS), he said.

Mr Ryan added that energy companies were doing their best to deal with people who were struggling to pay their bills.

The Government has already promised that no one who is in arrears on their energy bills will be disconnected over the winter.

Mr Ryan was speaking at the launch of a new energy poverty action plan. A further €210m is to be set aside to support people at risk of energy debt, with an additional €248m injection given to the Warmer Homes Scheme to retrofit for low-income households.

Meanwhile, the entire country will be under a status yellow low temperature/ ice warning until midday on Friday.

According to Met Éireann, it will be very cold throughout the week, with widespread sharp to severe frosts and icy stretches.

There will also be some showers of hail, sleet and snow, as well as widespread freezing fog.

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