‘Difficult winter’ ahead for households as energy costs rise

The Society of St Vincent de Paul (SVP) has said it is "very concerned" about the impact of increasing utility bills on low-income households, after officials warned of a "difficult winter" ahead.

Aoife McEvilly, chair of the Commission for Regulation of Utilities (CRU), said recent utility price increases would likely see people paying an additional €500 in annual electricity and gas bills.

“Unfortunately, due to a series of circumstances that are international market-driven, there have been a number of price increases in recent weeks and months; this will create pressure for customers over the coming winter,” she said. “I think we’re in for a difficult winter, and when we look ahead it is well into 2022 before we see some easing.”

Gas prices

Factors behind mounting bills included rising international gas prices and lower production from wind energy in recent months, she told RTÉ’s Today with Claire Byrne.

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“The cumulative increases we’ve seen probably add around €500 to an annual bill for a customer of electricity and gas together, so that is significant,” she said. “Customers will find it difficult to pay bills, there are already people in debt in the market at the moment.”

Payment plans were available for customers to avoid having their utilities shut off, among other protections, she said.

Tricia Keilthy, head of social justice at St Vincent de Paul, said the anti-poverty charity was "now very concerned about the impact of price increases" on households, which would push more people into "energy poverty".

Dread

During normal times, many families would “dread” the winter period, due to difficulties paying to heat their home, she said.

“Our volunteers will regularly support families trying to cut down on bills by living in one room of the house during the winter months,” she said.

Any “substantial” price increases by major utility suppliers would put lower-income households under “growing pressure”, Ms Keilthy said.

“Prior to Covid-19, it was estimated that one in eight households experienced energy poverty and there is a real danger now that many more will be pushed into energy poverty as a result of these price increases,” she said.

The charity wrote to the utilities regulator last month raising concerns about the impact of recent price increases on vulnerable households.

In recent days, Taoiseach Micheál Martin has said the Government plans to introduce measures in the budget next month to protect people on lower incomes from the impact of rising energy costs.