Energy companies cut prices for new year, sparking potential winter price war

Two of Ireland’s largest energy suppliers announced price cuts to gas and electricity within minutes of each other yesterday, Black Friday, sparking a potential winter price war.

SSE Airtricity and Electric Ireland both announced reductions taking effect in January.

Electric Ireland, which has more than 130,000 gas customers, will shave 2.5% off gas prices, saving customers just over €20 per year on their gas bills.

From January 11, SSE Airtricity will cut what it charges all customers for electricity by 2% saving customers €23 per year on their electricity bills.

Currently, Electric Ireland’s standard gas customers are paying €958 per year. This price reduction will mean that average bills should fall to €938.

This is the second time Electric Ireland has announced a gas price cut this year.

In April, the company cut gas unit prices by 2.5% saving customers around €21. It also cut electricity prices this month too, saving customers €24.

SSE Airtricity customers on standard rates pay €1,242 per year for electricity. This will drop to €1,218 as a result of the latest price cut.

The company, which has around 340,000 domestic customers, also cut prices in April of this year saving customers around €23.

Managing director of bonkers.ie David Kerr said that the price announcements would be welcome news for cash-strapped families.

“We’ve seen a lot of price increases over the last few years, so it’s good to see companies like SSE Airtricity and Electric Ireland helping to bring prices back down.

“What we’ve also seen in recent months are some of the biggest gas and electricity discounts ever offered by suppliers, and I would encourage customers to take advantage of those too,” he said.