Electric Ireland to cut prices by up to 12%
The move follows recent price cuts from Pinergy and Energia, putting further pressure on remaining suppliers to follow suit to cut prices.
Electric Ireland is the latest energy provider to announce price cuts, reducing costs for the first time in over three-and-a-half years which will impact more than 1.1 million customers.
Effective from the 1st of November, 2023, residential electricity prices will be cut by 10%, with gas prices to fall by 12%.
The reductions in both the unit rate and standing charge will equate to a saving of €17.67 per month on the average electricity bill and €18.06 per month on the average gas bill.
This means that Electric Ireland’s residential electricity customers will save an average of €212.06 and its residential gas customers will save an average of €216.67 on annual bills. This is a combined annual reduction of €428.74 for Electric Ireland’s dual fuel customers.
The move follows recent price cuts from Pinergy and Energia, putting further pressure on remaining suppliers to follow suit.
Commenting on the price reduction, Pat Fenlon, Executive Director, Electric Ireland said, “We are pleased to announce that we will be reducing unit rates and standing charges by 10% for our electricity customers and 12% for our gas customers this winter."
"While unprecedented international wholesale prices have fallen in recent months, Electric Ireland’s customers were not exposed to the extremes of these prices as a result of hedging strategies."
Currently, wholesale gas prices remain around 300% higher than they were in 2020.
The energy supplier said the price cuts will mean its estimated annual bill will be lower than any other standard electricity tariff available or announced for the market.
“We continue to offer the best prices we can for households, and have consistently provided one of the lowest standard electricity rates in the market," Mr Fenlon continued.
While welcoming the move, Taoiseach, Leo Varadker said, "I don’t think it is going to be enough. I plan to meet with energy companies and really put to them by view that there should be further reductions over the next few months."
"I think we have got tough with them (energy providers), and that is exactly what the windfall tax is. It is an additional tax on the profits of energy companies that are making a lot of profits at the moment."
"So there are two things that are going to happen now over the course of the winter. People are going to see the companies bring their prices down. That is underway. And they are also going to see the Government doing some things in the Budget to help people with their energy costs."
Speaking in Cork, the Minister for Finance, Michael McGrath welcomed the decision by Electric Ireland. “It’s part of a trend, we have seen a number of announcements by energy companies in recent weeks,” he said.
“That is justified by conditions in the international markets. And while there is a lot of volatility in the wholesale markets and uncertainty over the months ahead, this is good news and hopefully, we will see further announcements in the period ahead.”
Mr McGrath also said the price cuts would be considered in relation to any support measures to be announced in the Budget.
“For us as a Government, we have to take account of where current prices are when framing the Budget and take account of inflation and to decide what is the appropriate response by means of universal supports or targeted supports and we have another four weeks to make that decision.”
Welcoming the news, Daragh Cassidy of Bonkers.ie said, “This yet another sign of some normality returning to the energy market.
“It’s also welcome that Electric Ireland has cut its standing charge. These were increased hugely by all suppliers during the crisis. No one can avoid them, no matter how little energy they use, so it’s good to see Electric Ireland begin to reverse some of the previous hikes.
However, Mr Cassidy warned that even after today’s reduction, Electric Ireland’s prices remain around double what they were in 2020 before Covid and the war in Ukraine.
“Yes, prices are falling, but they’re falling from really high levels. So it’ll still be a very expensive winter to heat and light our homes."
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