Bord Gáis Energy has become the latest company to announce huge price hikes ahead of the winter.

The company says it is increasing the average residential gas bill 39% from October 2nd.

The average electricity bill will rise by 34% on the same date.

The company estimates that the changes will add €43.80 per month the average gas bill and €48.25 to the average electricity bill.

In a statement, the company said it was forced into announcing the rises due to “record increases in wholesale energy costs.”

Profits

Just over a month ago, the company announced a 74% rise in operating profits for the first half of the year.

The utility recorded an adjusted profit of €39.5m in the first half of the year, compared to €22.7m in the same period last year.

In it's interim results, Bord Gáis Energy owner Centrica said the return to service of the Whitegate Power Station in County Cork at the end of last year, coupled with “good trading performance,” contributed to the rise in profits.

Yesterday meanwhile, the State-owned Electric Ireland announced its own latest price hike, increasing electricity bills by 26.7% and gas bills by 37.5%.

The company is part of the ESB group which last year reported operating profits of €679m – a 10% increase.

The ESB is 95% owned by the Irish taxpayer.

"Astronomical"

Bonkers.ie spokesperson Daragh Cassidy said we’re “heading into winter with gas and electricity prices at absolutely astronomical levels – And it will get even worse.”

“The average gas and electricity bill is now around €4,000. That’s close to the UK price cap of £3,549,” he said.

“In the UK, the price cap is forecast to rise to over €6,000 in January. Over 70% of our gas comes via the UK so our prices track theirs relatively closely, so that shows you what we could be looking at.

“I’d encourage households to check out any Government supports which are available such as the winter fuel allowance, the free electricity allowance and the exceptional needs payment.

“Some suppliers have also set up hardship funds which will provide financial support to those most in need, so I’d encourage people to chat to their suppliers too.

“I would again appeal to the Government to reduce Vat on energy bills in the upcoming budget.”

Crisis

Bord Gáis Energy Managing Director Dave Kirwan said: “There is no precedent for the current energy crisis and consumers and businesses across the globe are grappling with very challenging increases in the cost of living.”

“We deeply regret having to raise our prices but the scale of increases in wholesale energy costs leaves us with no choice.

“We continue to do everything we can to reduce the impact on our customers and keep our rates as competitive as possible.”

Bord Gáis said it was pledging 10% of its operating profits to its Energy Support Fund during the energy crisis.