Why Are Flogas Raising Prices?
Flogas stated this represents their first electricity price increase in three years, following a 15% reduction in rates the previous year. The company attributes the hike to “significant increases in network charges” levied by EirGrid and ESB Networks for grid maintenance and upkeep.
Sean O'Loughlin, Managing Director of Flogas, highlighted a substantial 21% increase in network charges introduced in December 2024, with further rises anticipated in March 2026.
“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.” — Sean O'Loughlin, Managing Director, Flogas
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What Are Network Charges?
Network charges account for approximately 30% of a customer's electricity bill and are paid to national grid operators to ensure reliability and security of electricity supply nationwide. These costs are incorporated into the electricity unit rate and daily standing charge consumers pay.
Grid fees have been rising consistently due to 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.
The Commission for Regulation of Utilities (CRU) approved a significant hike in grid fees amounting to over €100 annually per household, with further increases projected for the next five years.
Flogas also cited persistently high wholesale energy costs as a contributing factor. While wholesale prices have decreased significantly from their 2022 peak during the energy crisis, they still remain considerably elevated — around 80 to 90 percent higher than before the conflict in Ukraine erupted.
How Will This Price Increase Affect My Bills?
- Percentage Increase: 7% on variable electricity charges
- Effective Date: December 25th
- Affected Customers: Approximately 43,500 residential electricity customers on variable-rate tariffs
- Average Annual Impact: €126 added to annual household bill
- Monthly Impact: Approximately €10.51 per month
Affected Customer Categories:
- Variable-Rate Tariff Customers: Will experience the 7% increase immediately
- Fixed-Rate Tariff Customers: No immediate change; prices secured for one year
- New Customer Discount Recipients: Will continue receiving percentage discount, applied to higher unit rate
- Natural Gas Customers: Unaffected by this electricity price increase
The average electricity bill in Ireland is €1,817.12 for a 24-hour urban standard meter.
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What Can I Do About Increasing Electricity Prices?
| Strategy | What It Involves | Potential Benefits |
|---|---|---|
| Switch Suppliers | Compare offers from different electricity providers and switch, especially if out of contract | Significant discounts (often 30% or more) for new customers in their first year |
| Optimise Flogas Tariff | If a Flogas customer, ensure on 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 | Reduced overall electricity consumption, leading to lower monthly bills |