Energy supplier Flogas has announced a 7% increase in electricity charges for residential customers, taking effect from August 25th, adding approximately €126 annually to household energy bills.
The price hike will cost the average residential electricity customer an additional €10.51 per month, though natural gas customers remain unaffected by the changes. Flogas defended the increase as its first price adjustment in three years, noting the company had reduced rates by 15% last year.
Managing Director Sean O’Loughlin attributed the increase primarily to rising network charges set by the Commission for Regulation of Utilities. “This announcement reflects a 21% increase in network charges introduced in October 2024, with further increases anticipated in October 2025,” he explained.
The company emphasized its commitment to supporting customers facing financial difficulties, offering payment plans, budget arrangements, and pre-payment meter options. Flogas also encouraged customers to ensure they’re on discounted contracts and switch to Smart Tariffs where available.
Market analyst Darragh Cassidy from Bonkers noted that wholesale energy prices remain 80-90% above pre-war levels despite falling from peak crisis levels in 2022. He highlighted that approximately 30% of energy bills goes toward grid maintenance costs through Eirgrid, ESB Networks, and Gas Networks Ireland.
These network infrastructure costs, while invisible to consumers as they’re incorporated into unit rates and standing charges, have been steadily increasing in recent years across the energy sector.