Electricity and gas prices set to plunge
Price cuts over the year saw average annual gas prices drop from €910 in October 2008 to €795. Gas bills will fall further in February as an 8% cut takes effect, wiping €53 from the average bill.
Electricity prices are less favourable, with the average bill increasing from €736 in October last year to €795. However, the opening up of the electricity market has seen 250,000 people switch to Bord Gáis for their electricity since early 2009. It offers customers a 10% discount on ESB prices. Those choosing to pay by direct debit and are natural gas customers will get a total 14% discount.
Flogas, meanwhile, is claiming it will always offer customers cheaper prices than Bord Gáis for gas. Up until February it is guaranteeing 9% lower prices. However, consumer experts have warned that if a household is getting its electricity from Bord Gáis, it would likely be cheaper to stick with Bord Gáis too for gas.
Saveafewbob.ie managing director Niall McHenry said: “2009 has been a good year for consumers when it comes to electricity bills. Attractive offerings from both An Bord Gáis and Airtricity has resulted in savings in the region of €100 to €150 for the average household.”
Homeowners have been enjoying increased competition in the domestic energy market over the last year.
The Irish natural gas market was opened fully to competition in July 2007, which means that alternate suppliers can compete against Bord Gáis Energy in all market segments. The electricity market was opened in 2005.
Gas prices peaked in September 2008 at an average of €916 per customer. Since then there have been two reductions. The first, in May, brought the average price down by 12%, to €813, and the second, in October, brought prices down a further 9.8%, to €738. Consumer Association of Ireland chief executive Dermot Jewell said it makes sense to review your electricity and gas supplier when there is competition.
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