The cost of living crisis is affecting millions in Ireland with prices rising across the board.
Inflation hit a 38-year high in June, increasing by 9.1% in the 12-month period, the fastest rate since 1984, according to the Central Statistics Office (CSO).
With the ongoing cost of living crisis, rising energy costs, potential blackouts and recession are looming this winter, according to several experts.
Read More: George Hook says debt nearly destroyed marriage and believes recession 'inevitable'
Blackouts
Speaking recently to Morning Ireland, former managing director of ESB International Don Moore said that Ireland was the “least prepared” for the looming prospect of blackouts this winter.
Stating that, unlike Germany, France and Italy, Ireland has opted not to stock up on oil and gas for the winter period.
"Ireland, the country at the end of the European gas grid, is the least prepared for a gas crisis this winter."
"I would say there's been a failure in system planning. There's always been growth in demand for electricity and the population has grown as well. It's now over 5 million people," he said.
Mr Moore explained that Ireland imports over 70% of gas from the UK, yet the state has no gas storage.
Soon after, and following an amber alert issued by The Single Electricity Market Operator (SEMO) which signified a threat to the supply of electricity, Tanaiste Leo Varadkar said that the government is “doing everything” it can to avoid blackouts this winter.
Mr Varadkar said the Government is seeking additional generation capacity and looking at plans to reduce demand during peak times.
Energy price increases
Despite already reaching record highs, energy and gas prices are expected to rise further in the coming months with new data from the CSO showing that electricity costs jumped by more than 86 per cent in 12 months.
The increases meant that, on average, households are paying €900 more a year for their electricity and €800 more for their gas than at the start of 2021.
In 2021 there were over 35 price hike announcements. And so far in 2022, big suppliers such as Bord Gáis Energy, Electric Ireland, SSE Airtricity, and Energia have announced more price increases.
Recession
With the current level of inflation, a recession is inevitable, according to Eddie Hobbs, Ben Dunne and David McWilliams.
In an interview with the Irish Mirror, Hobbs said: “We will likely be in recession by early Autumn, but definitely by Winter. All the signs are there.
Right now, we are in a vortex, on the way to recession. We’re looking at the economy contracting, job losses, business closures. It’s a f**king firestorm.”
Hobbs said that several issues gave rise to inflation including lockdowns and the war in Ukraine.
“It cost us €40billion to do lockdown. We completely overdid the money printing. It’s going to end in inflation.”
“We had inflation before Putin rolled across the border on February 24. It’s exacerbating it.
“We’re looking at rationing electricity next winter. We will experience unaffordable prices. The shock of energy rationing and food rationing is going to cause a change of mindset,” he said.
“We enter the epoch with a vast housing crisis, a dysfunctional health system, and a civil service where risk-taking is punished and doing nothing gets you promoted.
Economic depression
Ben Dunne went further in saying that an incoming recession could turn into an economic depression, a worldwide economic downturn, with devastating effects on society and the economy.
Speaking to the Irish Mirror previously, Dunne said: “Everyone can say: 'there's a recession on the way.' But it’s very easy to turn a recession into a depression.
“You keep upping prices and prices rise. Then wages rise - and when wages rise, costs get too expensive. And then it’s not recession - you go into a depression.
“The big problem today is, every other time we hit hard times on this island, we were able to emigrate. This is worldwide now.
“We can’t just go to England, the US or Europe. They’re in the same position as us. That's the frightening thing. We’re heading for disaster.”
However, some have a different view on how a potential recession could pan out.
Economist David McWilliams believes that this incoming recession will not be as long or devastating as the 2008 crash.
In a recent episode of his podcast, McWilliams said: "I don't think it is going to be anything as extreme as the case in 2008 and 2010 when there was mass, mass emigration of a whole blue-collar class in Ireland."
“What we are looking at now is much more akin to a short recession. Not particularly a shock but a creeping short recession,” he said.
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