Tesco deal could save 10% on energy bills

Bord Gáis Energy and Tesco have agreed a deal that could deliver savings of around 10% to hard-pressed consumers struggling to pay their energy bills.

From May 21, customers will be able to use their Tesco clubcard points to get a discount on their Bord Gáis gas or electricity bills.

If a Tesco customer receives a €5 discount voucher as a result of their Tesco clubcard points, Bord Gáis will double the value and give the consumer €10 off their gas or electricity bill.

Managing director of Bord Gáis Energy, David Kirwan, said the idea behind the link-up was to provide families with savings on their essential expenditure.

“The partnership between Bord Gáis Energy and Tesco will give customers great value benefits by reducing energy and grocery bills, which are amongst the most important expenditures for Irish families,” he said.

Research by Kantar Worldpanel, which monitors grocery spends by consumers, has found that, on average, a family spends over €100 a week on grocery shopping.

This would translate to 5,200 Tesco clubcard points a year. This would be worth €52 in discounts a year, and when doubled by Bord Gáis, would amount to an annual saving of €104 off a family’s Bord Gáis energy bill.

A spokesperson for Bord Gáis said the deal was designed in order to retain customers for both Tesco and Bord Gáis.

“The energy market in Ireland is the second busiest in the EU. The Bord Gáis Big Switch campaign was the most successful switching campaign run anywhere in the world, resulting in 300,000 people changing energy provider. We are now looking at a retention strategy.”

There is a 62% overlap between Tesco and Bord Gáis customers and the deal will enable the two companies to consolidate their market share.

Bord Gáis will also become the only company in Ireland, other than Tesco, that will be authorised to issue Tesco clubcard points to its customers.

The points issued by Bord Gáis can then be used to further reduce energy bills. Further details on how this deal will operate have yet to be announced.

Tesco Ireland marketing director Henry Dummer said the deal was part of the development of the clubcard to reward customers for their loyalty.

“We are very excited about this new and innovative partnership with Bord Gáis Energy.

“For the past three years, we have been developing and enhancing our clubcard offer, introducing more reward options and giving customers more choice on how they can make their reward vouchers go further.

“The announcement is another significant step on that journey and is the very first time that a retail rewards scheme has teamed up with a major utility provider.”

None of the other major retailers in Ireland were willing to comment on the deal signed between a semi-state company and an international retailer.