Irish consumers are set to see further increases in their energy bills after Russian President Vladimir Putin threatened to cut off gas supplies to Europe.
Putin made the announcement on Thursday demanding that Russia be paid in roubles for its gas, or he would cut off supplies. The threat has caused wholesale prices on the international market to rise even further as Russia supplies almost a third of Europe's gas.
If a decision is made to halt gas supplies, Irish consumers will see a huge increase in their bills. The news comes after experts warned that electricity customers could end up paying 50 per cent more for power at peak times.
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The Government is considering plans to limit the impact of the energy crisis as gas and electricity costs continue to rise. The plan would see households with smart metres installed being put on mandatory "time of use" tariffs. Current data protection issues mean that customers are required to give their consent to these tariffs, with only 10 per cent making the switch so far.
Green Party leader, Minister Eamon Ryan, said he has been talking to the Data Protection Commissioner about dropping the requirement for consent.
He said: "Such is the urgency, and such is the benefit, we are going to look at that being mandatory and using an opt-out rather than a voluntary approach."
The move aims to encourage people to use high energy consuming appliances late into the evening or overnight when cheaper rates apply. However, this would mean people would be charged more for energy use during peak time when most electricity is used as people go about their day.
Electricity providers currently charge smart tariff customers between 15 and 50 per cent more during the 5pm-7pm peak times.
Minister Ryan also confirmed that the €200 energy credit would be paid to the household's accounts from next week. The measure comes into effect as the Government tries to combat the increase in energy costs for Irish customers. The credit will be automatically applied to account holders' next bill.
Energy suppliers have announced various new price hikes, with Electric Ireland becoming the latest to increase costs for both electricity and gas. The energy provider said it would increase its residential electricity prices by 23.4% and gas prices by 24.8% from May 1.
The increase will see an additional €24.80 a month on the average residential electricity bill and €18.35 a month on the average residential gas bill.
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