Energia announces 20% cut in gas and electricity prices

Move in response to changes in wholesale energy prices

Energia said the cuts would amount to savings of up to €682 per year based on the average annual bill for a gas and electricity customer.

Gas and electricity supplier Energia has announced reductions of up to 20% for residential customers which will come into effect from October 3.

The company said its gas customers would see a 20% cut in their unit prices while smart meter electricity customers and dual fuel customers would also see 20% reductions. Regular electricity customers would see a 15% cut in prices.

It is the first price cut by a major supplier since 2020. In a statement, Energia said the cuts would amount to savings of up to €682 per year based on the average annual bill for a gas and electricity customer.

Last September Energia increased gas tariffs by 39% and electricity prices by 29% in response to the sharp rise in global energy prices. This followed a 19% increase the company had announced in April 2022.

Gary Ryan, Managing Director of Customer Solutions with Energia Group said the wholesale market has experienced significant volatility over the past two years. "We have worked at all times to mitigate the challenges of these costs for our customers," he said. "We continue to review energy market pricing and are committed to providing customers with the best possible value into the future.”

Energia is part of Energia Group which supplies over 828,000 homes and businesses across the island of Ireland.

Their move follows Pinergy's announcement last week that its standard residential electricity prices will drop by 9.5%. All energy utilities are under pressure to reduce tariffs as the wholesale price of energy has dropped significantly in recent months.

Daragh Cassidy, Head of Communications for price comparison website bonkers.ie said Energia's move was welcome news and said it is likely all the other main suppliers will announce similar drops over the coming weeks.

“However even after today’s reduction, Energia’s prices remain very high and way higher than the EU average. Prices are falling, but they’re falling from really high levels to begin with.

“The energy market still remains volatile with gas and electricity prices on wholesale markets still at levels that are way above normal. And we're a long way from prices returning to the more normal levels we last saw in 2020," he said.