The utility has confirmed a 5% drop in its electricity unit rate and a 2.5% drop in its gas unit rate from October 1.
It said the changes mean it will offer the lowest standard electricity and dual fuel prices in Ireland and will save a typical dual fuel household around €67 per year. The combination of these three price drops will mean a saving of €156 for a typical dual fuel customer since February 2015. In addition, Bord Gáis continues to offer existing customers an ongoing 5% discount for payment by direct debit and paperless billing.
The utility has around 315,000 residential gas customers and 333,500 residential electricity customers.
There are a number of factors that make up the cost of energy.
Wholesale costs account for approximately one third of the bill; one third is the cost of getting energy to a customer’s home; and the rest is made up of taxes and supply charges.
The Commission for Energy Regulation (CER) recently approved increases in network costs for electricity which affect all suppliers, and Bord Gáis yesterday said it would absorb these increases over the winter period.
Managing director of Bord Gáis Energy, Dave Kirwan, said the company was determined to give their customers the best value it could offer: “Winter is a time when many people face increases in the cost of living and we’re focused on helping our customers keep costs down as much as possible.
“For most of the past five years, our customers have paid the lowest standard electricity and dual fuel unit rates in Ireland and today’s announcement means they will continue to do so this winter. We can’t control every part of the cost of energy but we promise to do our bit to lower prices when we can.”
Reacting to the price cuts, managing director of Switcher.ie, Eoin Clarke, said the cuts are good news for consumers coming into the winter months: “In total, the three price cuts by Bord Gåis Energy will save typical dual fuel customers €156 per year. It goes without saying that any price cut like this is especially welcome as we approach the winter months. It follows similar price cut announcements recently from two other big players in the market, Electric Ireland and SSE Airtricity.”
Mr Kirwan said the price cuts could force other players in the market to also lower their prices.
“We’re yet to see a price cut coming from Energia this year, but perhaps this move by Bord Gåis Energy today will put further pressure on them to make a cut.
“A report by Vayu Energy, published yesterday, showed wholesale gas prices are down 35% year-on-year, while electricity rates are currently down 27%, so there is definitely scope for any suppliers who have not yet done so to make a cut,” he said.