Prices of electricity. Are they ever dropping?

AndrzejL

Hey folks.

First C19, then Ukraine and Russia situation...

We are paying more and more - they blame inflation etc. but in the same time - they report massive increase in profits.

A) How much more of this are they going to throw our way?

B) Will we ever see "normal" / reasonable prices of electric units?

Am I delusional to think that soon-ish prices of electric units will be lowered like the prices of lets say graphics cards which were hugely inflated in the past year or so?

What's your opinion?

Cheers.

AndrzejL

ongarite

Probably looking at 25% decease in unit prices by year end.

The Irish energy market mirrors the UK market ( we source a lot of gas from them) & their prices which are significantly higher than EU mainland prices.

Ireland won't have a connection to EU energy grid until 2026 with interconnector to France.

UK future gas prices for year end are selling for £120-130 per mmBTU, around 50% of last winter nominal price.

AndrzejL

https://www.boards.ie/discussion/comment/120801522#Comment_120801522

That is very reassuring and informative.

Thank you!

AndrzejL

waterwelly

https://www.boards.ie/discussion/2058303565/prices-of-electricity-are-they-ever-dropping

One thing people overlook is that a lot of the price increases were never passed to the end customer (you and me)

Companies hedged early to avoid this. The downside is prices will be slower to fall.

Regarding profits, the 2 biggest suppliers in the country are owned by you and me, so we get the money back one way or another.

zell12

Minister said last year, that: No they will remain at this price for a few years

https://www.breakingnews.ie/ireland/energy-prices-may-not-fall-for-next-two-years-environment-minister-warns-1405211.html

IEA backs this up yesterday

https://www.bbc.com/news/business-66061853

Floppybits

No in this country prices only ever go one way and that is up. Unless there is pressure put on by the government then they will keep putting prices up but the government benefit from the higher prices by getting a bigger tax take, so as we have seen they will sit back and put their hands in the air and say we can't do anything.

pagan22

when you look at markets,the price of oil gas and coal has dropped to pre ukraine war levels,theyre taking us for mugs tbh

rob316

https://www.boards.ie/discussion/comment/120804289#Comment_120804289

Eamon Ryan said it, if that fella said grass is green I'd have to double check

AndrzejL

https://www.boards.ie/discussion/comment/120804289#Comment_120804289

I am not sure I can survive this... My electric bills doubled in cost over a period of few months...

Those were my per unit prices in 2021...

This is what I am paying per unit now...

It has more than doubled overnight... With my tight budget - I disabled what I could and we had no heating last winter (electric heaters + I am renting so cannot change that) and the electric bill nearly gave me a heart attack. Thank Cat we have no children - layers are fine for 2 adults...

Cheers.

Andrzej

AndrzejL

https://www.boards.ie/discussion/comment/120804304#Comment_120804304

I see... In the town that I live for the past 20 years we used to be able to rent a decent size house for less than 500 per month... Now the landlords think we are living in Dublin city center... €1100+ for a flat 😮... Insanity!

Cheers.

Andrzej

Wolf359f

https://www.boards.ie/discussion/comment/120804135#Comment_120804135

Was it only Irish countries that hedged? Because prices across Europe have fallen after increasing at a similar rate to Irish prices. I understand the need for energy suppliers to purchase in advance, but just how far ahead have Irish companies hedged?

I've a feeling the rest of Europe locked in ahead when prices were cheap over the past few months and the Irish companies will wait until winter (when prices naturally increase) to lock in at a higher rate. It's just the Irish way, isn't it?

Despite being in the European energy market, someone has to ask the question why Irish prices are not falling and why suppliers cannot even say when they will. If they have hedged x months ahead, they could say in x number of months, the prices will be reviewed etc...

joebloggs32

As others said, the practice of hedging shielded us from instant increases in the price of electricity and gas when the war in Ukraine kicked off, but that same practice means the impact of reduced wholesale costs are slow to make thdir way back to us.

On the other hand, i have oil fired central heating. The price of domestic heating oil instantly shot up for me and I had no protection from it...Eamon Ryan wouldn't even reduce the VAT on it like he did for Gas bills.

However as the wholesale price of oil is now reduced, home heating oil prices have probably fallen by at least 1/3 off it's peak.

It would be interesting to see if consumers were given the choice of signing up with an energy provider that doesn't engage in hedging how many would actually go for it.

waterwelly

https://www.boards.ie/discussion/comment/120804319#Comment_120804319

And the fall in petrol and diesel prices reflects this.

Ditto home heating oil.