Bord Gáis becomes latest energy supplier to announce price cuts

Managing director of Bord Gáis Energy Dave Kirwan claimed the second reduction in four months will result in dual-fuel customers saving almost €1,000 a year on their bills when the November and February drops are combined.

Bord Gáis Energy has said 600,000 customers will benefit from its latest round of energy price cuts, with a 10% reduction in electricity, 9.5% in gas, and 8% in standing charges from the end of February.

It is the second time in four months the firm has dropped costs for consumers, following Electric Ireland’s announcement on Monday it was to cut its electricity and gas rates.

Despite the welcome news for consumers, households still face huge costs to power their homes following record price increases in recent years. 

Energy prices remain significantly higher than they were before the covid-19 pandemic and the Russian invasion of Ukraine even with the new cuts, consumer advocates have cautioned.

Bord Gáis Energy said the combined 10% reduction in electricity unit rates, 9.5% reduction in gas unit rates, and 8% reduction in standing charges means a residential dual-fuel customer will save an estimated €331 a year, while electricity-only customers will save about €190, and gas-only customers will save about €141.

The estimates are based on typical annual consumption values of 4,200kWh in electricity and 11,000kwh in gas as set by the Commission for Regulation of Utilities (CRU).

Managing director of Bord Gáis Energy Dave Kirwan claimed the second reduction in four months will result in dual-fuel customers saving almost €1,000 a year on their bills when the November and February drops are combined.

“Despite some volatility remaining, wholesale energy prices have continued to stabilise, and our careful hedging strategy has meant we can pass on today’s savings,” he said.

The firm said it recognised the last two years have been “particularly difficult for those struggling to meet their bills”.

Electric Ireland said earlier this week its plans for an 8% drop in electricity prices and 7% drop in gas unit rates would lead to a combined annual reduction of €264 for the average dual-fuel customer.

The price reduction, set to take effect from March 1, comes after another recent price drop made by the company in November.

Critics have said energy companies have also been slow to pass on reductions in the cost of wholesale gas and electricity, all while parent companies make huge profits.

Tánaiste Micheál Martin said this week he believed energy companies could do more and do it quicker.

“I’m conscious that there's been a lot of pressure on families over the last two years, in particular since the war in Ukraine and the consequential increase in energy prices, and of course, the post-covid period. People have been under pressure. 

"I think it's a welcome move today that we have witnessed, but I think there is space for more as well," he said in relation to Electric Ireland's announcement.