Energy suppliers set to drop prices again but future increases likely  

SSE Airtricity customers on variable tariffs will see gas and electricity prices fall 10%. Picture: File

Households can expect to see the major energy suppliers drop their prices again in the coming weeks but have been warned of a “mixed outlook” going forward that may offset these savings.

Today, SSE Airtricity customers on variable tariffs will see the cost of gas and electricity fall by another 10%.

This will translate to an average saving of €150 on electricity and €100 on gas on annual bills. This is the third price decrease from SSE Airtricity in less than a year, with prices now 30% down on the height of the energy crisis two years ago.

Around 250,000 electricity customers and 90,000 gas customers will benefit.

It is expected that the other major suppliers may soon follow suit with their own price cuts, according to Bonkers.ie’s Daragh Cassidy.

“There's been a somewhat muted response from SSE’s main competitors so far,” he said.

“But I’d still expect the other main suppliers like Electric Ireland, Bord Gáis Energy, and Energia to also cut their prices for existing customers by a similar amount over the coming weeks.” 

However, while the recent cuts to energy prices have been welcome, Mr Cassidy warned that households are still paying far more than they were before the cost-of-living crisis.

Despite the latest price drop, SSE’s third in under a year, its electricity prices are still around 70% higher than they were before the energy crisis broke out, while its gas prices remain around 80% higher.

“This means households will still be paying around €1,000 a year more for their gas and electricity than they were only a few years ago. So energy costs will remain a concern for many households for the foreseeable future," he said.

Daragh Cassidy of Bonkers.ie said the PSO levy is likely to increase from October, which will add almost €40 a year to electricity bills. Picture: File

In recent years, the Government has provided energy credits to all households to help combat the surging cost of electricity. While the amounts households received this year was slightly reduced, they still received €450 credit across three payments.

Taoiseach Simon Harris has previously said that cost-of-living measures must be a focus again for Budget 2025, but it is not yet known if this will include a further electricity credit.

Looking forward, Mr Cassidy said that wholesale gas and electricity prices still remain around double pre-energy crisis levels, which means there are limits as to how far prices can drop.

He also said there were further uncertainties on the horizon.

“Meanwhile the PSO levy is likely to increase from October, which will add almost €40 a year to electricity bills,” Mr Cassidy added.

“On top of this, Vat is due to increase from 9% to 13.5% at the next budget. And the carbon tax will go up again. All these measures will negate some of the recent price drops.”