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Electricity bills won't come d...

National

Electricity bills won't come down as fast as wholesale prices

RedFM Sport
RedFM Sport

08:54 7 Jul 2023


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It's claimed electricity bills won't come down as quickly as wholesale prices.

Yesterday, Climate Action Minister Eamon Ryan said there was an expectation that consumer prices would start to fall coming into the autumn.

In May, wholesale prices dropped by 16 percent from the previous month, but household bills have remained high.

Founder and CEO of Bonkers.ie, David Kerr, says that's because energy companies have a practice of buying energy months in advance.

"They're buying ahead at higher prices, and that means when the prices reduce a little bit we don't see that immediately.

"The lumps and bumps of the wholesale market are being sort of ironed out, because of that hedging and because of that lag.

"And that's a good thing actually - when the prices come down they come down slowly."


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