Energy price war heats up as Airtricity offers dual fuel rates

CONSUMERS can save €210 a year by switching their gas and electricity supplier, as the energy price war heats up.

This is the claim from Airtricity, the newest entrant to the market, which is calling itself “Ireland’s cheapest energy supplier”.

This news comes as Bord Gáis announced it is unlikely to look for a gas price hike this year.

Airtricity said its entrance into the domestic gas market will create 200 jobs.

It is offering a 10% discount on Bord Gáis gas rates and a 13% electricity discount on ESB unit rates. It is the only operator that has the power to set its own rates on both electricity and gas.

As ESB is the dominant player in the electricity market and Bord Gáis in the gas market, their prices in these areas fall under the remit of the regulator.

Bord Gáis has already convinced 350,000 customers to switch to it for electricity, as part of the hugely successful Big Switch campaign.

Airtricity will be hoping for a similar response to its launch and is targeting 500,000 customers by 2013. It currently has 200,000 electricity customers.

The ESB is expected to announce its move into the gas market later this year, which would bring the number of dual fuel – electricity and natural gas – suppliers in Ireland to three.

Although it is likely to lose thousands of customers as a result of the Airtricity announcement, Bord Gáis said this will provide further competition and that is “good news for all gas customers”.

Bord Gáis Energy, which has 650,000 gas customers and more than 350,000 electricity customers, said it has reduced gas prices to residential users by 25% over the last 12 months.

Private company Flogas offers consumers a discount of 9% if they switch to it from Bord Gáis.

It has guaranteed to undercut the state company’s gas prices by 9% until October at least.

Airtricity is adding 100 jobs at its headquarters in Sandyford, Dublin, with another 100 jobs being created in sales, customer support, billing and support services.

Managing director with Airtricity, Kevin Greenhorn, said: “With the launch of Airtricity’s new dual-fuel energy rates, customers will now benefit from real choice, from real competition at last, and from real savings in their gas and electricity costs – putting their money back where it matters most, in their pocket.”