As Ireland’s energy costs skyrocket, some families will be looking for a more cost-effective way to heat their homes this year.
Although the introduction of €100 credit next month will help ease energy costs, a long-term plan in lowering household bills may be necessary for some families.
The main energy options in Ireland are monthly utility bills by direct debit to an energy provider or having a prepaid system installed in your home.
Most adverts for the likes of Pinergy and PrePay Power are targeting people who would rather be ‘in control' of what they’re spending on electricity and heating.
However, according to the experts at moneyguideireland.com, they can actually end up costing you more than your standard monthly provider.
According to their advice: “With a pre-pay meter, you can only use the electricity you have paid for. Therefore, in theory, it is easier to control your usage because you have to keep topping the meter up.
“Many landlords also seem to like the idea of prepaid meters for their rental properties. A prepay meter means they don’t have any worries about outstanding electricity bills for tenants.”
There are two well-known companies that install these prepaid systems in Ireland - Prepay Power and Pinergy.
However, experts warn that although a prepay meter will be installed for no upfront fee if you switch to them, they still could end up costing you a lot more at the end of each year.
For instance, with Pinergy, the basic unit rate they charge is 38.25 per kWh, alongside an annual service charge of €362.
So that means someone using Pinergy who uses the average amount of electricity (4200 Kwh) would end up paying around €2030 a year.
With Prepay Power, each customer is charged €451 service cost annually.
Although they have a lower rate than Pinergy at the moment, if you use the average amount of electricity each year it would still cost €1,517.
However, if you were with one of the cheaper standard electricity providers in Ireland, and were using the average amount of electricity you would pay €962 in the year.
