Prepay Power cuts energy rates following tumbling wholesale prices

Pinergy also announced price reductions for their customers shortly before Prepay Power did.

Prepay Power has cut electricity and gas rates for new and existing customers following a sharp decline in wholesale energy prices.

The price reductions will affect 180,000 electricity customers and 60,000 gas customers with the pay-as-you go energy provider.

Based on average annual usage and the reduction, the company estimated a typical duel fuel customer could save €247. The price change will take effect from the start of April 1.

The average annual bill for electricity is set to be reduced by 6.7%, or €136 less per year, while gas prices have been cut by 6.6%, representing a saving of €111.

This is the second cut implement by Prepay Power as wholesale energy prices continue to tumble and pressure mounts for suppliers pass on these reductions to customers.

Recent figures published by the Central Statistics Office showed wholesale electricity prices climbed 12.3% last month but plunged 38.4% in annual terms.

The company, which employs around 400 people, previously cut gas unit rates by 13.5% and electricity unit prices by 12.8% in November.

Pinergy also announced price reductions for their customers shortly before Prepay Power did.

Pinergy will cut their prices for residential customers by 8.4% from April 1.

The reduced rate will shave around €183.12 a year off customer bills.

The announcements by Prepay Power and Pinergy may force larger suppliers including SSE Airtricity, British energy supplier Centrica owned Bord Gáis and semi-State body Electric Ireland to cut prices further, especially as high bills have led to bumper profits for these firms.

For example, the ESB, which Electric Ireland operates under, posted a €157m increase in operating profit ahead of the colder winter months last year. 

"All the main energy suppliers recently responded to the easing of wholesale prices by announcing their second price cut in just a few months,” said Daragh Cassidy, head of communications with price comparison site Bonkers.ie.

Mr Cassidy added that SSE’s cut came into effect at the start of February while Electric Ireland and Bord Gáis Energy customers will see lower bills this week.

"But even after these cuts, residential electricity prices still remain around 80% to 90% above what would, until recently, have been considered normal levels,” he said.