Flogas Announces 7% Electricity Price Increase for Irish Customers
Flogas, has announced a 7% increase in its variable electricity charges, set to take effect from August 25th. This move will impact approximately 43,500 residential electricity customers on variable-rate tariffs across the country, adding an estimated €126 to the average annual household bill, or around €10.51 per month. The announcement comes as a blow to households already grappling with a persistent cost-of-living crisis, and signals potential further increases from other suppliers in the coming months.
Why Are Flogas Raising Prices?
Flogas stated that this is their first electricity price increase in three years, following a 15% reduction in rates last year.
However, the company asserts that the current hike is a necessary response to significant increases in network charges, which are levied by Eirgrid and ESB Networks for the maintenance and upkeep of Ireland's electricity grid.
Sean O'Loughlin, Managing Director of Flogas, highlighted that the decision reflects a substantial 21% increase in network charges introduced in October 2024, with further rises anticipated in October 2025.
While we understand that any price change can be challenging for our customers, this announcement reflects the unavoidable increase in network charges. Flogas is committed to supporting affected customers and offers a range of options, including payment plans, a Budget Plan, and pre-payment meters, urging any customer facing financial pressure to contact our customer service team.
What Are Network Charges?
Network charges, which account for roughly 30% of a customer's electricity bill, are paid to the national grid operators to ensure the reliability and security of electricity supply across the country. These costs are incorporated into the electricity unit rate and daily standing charge that consumers pay.
Grid fees have been consistently rising due to the considerable investment required to accommodate a rapidly growing population and integrate increasing amounts of renewable energy sources like wind and solar power into the grid.
For instance, the energy regulator, the Commission for Regulation of Utilities (CRU), approved a significant hike in grid fees last year, amounting to over €100 annually per household, with further increases projected for the next five years.
Beyond network charges, Flogas also pointed to the persistently high wholesale energy costs as a contributing factor.
While wholesale prices have indeed decreased significantly from their peak during the height of the energy crisis in 2022, they still remain considerably above pre-war levels – around 80 to 90 percent higher than before the conflict in Ukraine erupted:
Ireland Average Electricity Unit Price per kWh
Cents/kWh
The broader context of energy affordability in Ireland remains a significant worry. Recent figures cited in the Dáil by Sinn Féin TD Pearse Doherty revealed a staggering increase in households falling into energy bill arrears, with over 300,000 households behind on electricity bills and more than 175,000 on gas bills.
Electricity Bills Costing You Too Much in 2025?
Talk to us here at Selectra and we can help you make the right choice and save money!
Call Today to Switch Energy Providers and Save On Your Energy Bills
We're currently closed but please leave us your number and we'll give you a free call as soon as we're open!
How Will This Price Increase Affect My Bills?
The timing of Flogas's announcement, will come as a blow to households as they prepare for the higher energy consumption typically associated with autumn and winter.
While Flogas is not one of the largest electricity providers in Ireland, its move could set a precedent for other companies in the market. This move will impact approximately 43,500 residential electricity customers on variable-rate tariffs across the country, adding an estimated €126 to the average annual household bill, or around €10.51 per month.
For Flogas customers on fixed electricity tariffs, there will be no immediate change to their bills, as their prices are secured for a year.
Similarly, those who have recently switched to Flogas and are benefiting from new customer discounts will continue to receive their percentage discount, albeit applied to a now higher unit rate. Natural gas customers of Flogas are also unaffected by this specific electricity price increase.
Here at Selectra, we can anticipate that other energy companies will follow suit with their own price adjustments in the coming weeks and months, as all suppliers face similar cost pressures.
How Much is the Average Annual Electricity Bill in Ireland?
The average electricity bill in Ireland is €1,817.12 for a 24hr urban standard meter.
What Can I Do About Increasing Electricity Prices?
In light of these developments, Selectra urges electricity customers to manage their energy consumption and explore all available options to mitigate the impact of rising costs:
| Strategy | What It Involves | Potential Benefits |
|---|---|---|
| Switch Suppliers | Compare offers from different electricity providers and switch to a new one, especially if you're out of contract. | Significant discounts (often 30% or more) for new customers in their first year. |
| Optimize Flogas Tariff | If you're a Flogas customer, ensure you're on a discounted contract. If you have a smart meter, consider switching to a time-of-use tariff. | Potential savings on night-time usage and overall reduced rates. |
| Actively Manage Usage | Implement energy-saving habits like unplugging electronics, using energy-efficient appliances, optimising heating/cooling, and utilising natural light. | Reduced overall electricity consumption, leading to lower monthly bills. |
Looking For Other Ways to Reduce Your Energy Bill?
Stay up to date with the latest news from Selectra to learn how to lower your energy bills or find a cheaper electricity provider.