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Energy/Gas hikes on contract?

  • 29-08-2022 7:16pm
    #1
    Registered Users Posts: 443 ✭✭


    I had just signed up with Airctricity for a 12 month contract, and they immediately hiked their rates 45%. The offer is a lot less tempting and while I have an option to cancel as I'm in cool-off I'm sure the next provider will do the same too.

    But I wonder, how does this work? I sign a 12 or 24 month contract, they list 'early exit' fees and then they can just hike the rates to whatever they want with no consequence? I'd understand if these were live rates, set by the market but clearly they have discretion in the amount and timing of the hike. Feels like a consumer should have an option to break out of contract when rates change.



Comments

  • Registered Users Posts: 1,300 ✭✭✭Bits_n_Bobs


    Regulatory capture , risk free capitalism or we need to be careful not to scare off future investors in the market. Take your pick really



  • Registered Users Posts: 1,297 ✭✭✭walterking


    You signed up for a variable rate contract. The terms and conditions you agreed to allows for the prices to go up and down. (prices dropped in 2019 & 2020)


    If you had a business account you would be able to get live rates set by the market and also pay "pass through" charges. I assure you that you would not like this as live rates are currently over 60c a unit. The UK system is "near live" and is based on 3 month averages based on the 3 month international gas price which has led to 52p unit rates and unless they do something to change the market dynamics, UK customers will be paying 75p+ from January.

    Yes the others will go up too, but my inkling is that Electric Ireland will remain the lowest as there is some government influence there.



  • Registered Users Posts: 56 ✭✭4dxc


    😂 Same for me. Went to Airtricity as of August 10th and now a 45% increase starting October. These kind of contracts are one way... customer is locked in for 12months (or exit fee) while the supplier can do whatever they want price-wise. There should be an exit right with no fee in case of price increases, especially when we are talking about 45% (!) increase. As SSEs last increase was only in May I was hoping for the prices to last a bit longer.

    Anyway, you might change now but it`s doubtful that your next provider won`t increase again as well... so all this seems to be valid only for a couple of months (or weeks) and then it`s going to be reshuffled again.



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