Energy bills have been soaring for Irish householders for the last couple of years with inflation, costs and the war in Ukraine blamed by energy companies.
Despite a number of government credits to help with bills, customers have faced huge uncertainty with large rises to standard bills multiple times a year.
Flogas has become the first supplier in almost three years to offer a fixed energy deal in the Irish market.
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As the name suggests, a fixed energy deal doesn’t increase in price for the duration of the contract - in this case one year.
Fixed energy deals are relatively common in most other countries but the last fixed deal to be offered in Ireland was in early 2020, from Budget Energy and Iberdrola, which have now both left the market.
Flogas is now offering a fixed unit price for gas, electricity and dual fuel for both new and existing customers. The standing charge is also fixed.
On top of this, Flogas is offering €300 welcome credit to everyone signing up to a dual fuel plan. And €150 welcome credit to those who sign up to a gas or electricity plan only.
Commenting on the news, Daragh Cassidy, head of communications at bonkers.ie says:
“It's been a tough time for energy customers as we all know.
“Given all the uncertainty, many households have been asking for fixed energy deals where they’re guaranteed a price for their gas and electricity for a year or so.
“However these haven’t been available in recent years until now.
“These deals can offer certainty to households and help with budgeting. And the ones from Flogas are good value (if you could use that word in today’s market).
“Usually fixed energy deals are more expensive than variable energy deals as you’re paying for the certainty of locking in a price for an entire year. However most households which use an average amount of gas and electricity will find these deals among the cheapest in the market right now.
“A fixed deal may not be suitable for everyone but it’s good to see consumers now have the choice. Though it's wise to do a full comparison of the entire market before making a choice to see where the best value lies for you.”
However, Daragh also adds a note of caution.
“The downside of a fixed energy deal is that the price of gas and electricity might fall during your contract and that you'll be locked into paying the higher price for the remainder of the year.
“No one can say for certain how energy prices will pan out over the next year or so. Although wholesale energy prices have eased slightly in recent weeks, the outlook is still very uncertain. Indeed in December the wholesale price of electricity in Ireland shot up again by over 90% compared to the previous month having fallen for a few months in a row. So this is a risk consumers have to weigh up.”
“You can of course break your contract, but you’ll be hit with a €50 per fuel early-exit fee and may also have to pay back any welcome credit you got.
“And of course, consumers are just getting a fixed unit price for their gas and electricity. It’s important to remember that your bill will still change based on how much energy you actually use.”
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