Electric Ireland is to decrease gas prices for 140,000 customers by 4% from the beginning of November, while there will be no increase for the company’s 1.1 million electricity customers ahead of the winter.
The announcement from the country’s biggest energy supplier will be welcomed by consumers, who had been bracing for further price rises after a number of companies recently increased their tariffs.
The 4% reduction in Electric Ireland’s residential gas unit rates and standing charges will equate to a €57.56 annual saving on the average gas bill.
The company, which is owned by ESB, has now lowered its gas prices on four consecutive occasions and its electricity rates three times since November 2023.
Executive Director of Electric Ireland Pat Fenlon said the supplier is “acutely conscious of the financial pressures facing our customers and we believe today’s announcement will provide improved value for Electric Ireland customers as we face into the winter”.
Today’s announcement from Electric Ireland follows confirmation yesterday that Energia is increasing its electricity prices by up to 12.1% from 9 October, which will add more than €200 onto the annual bills of many customers.
Last month Flogas hiked its prices by an average of 7%.
Suppliers have cited increased network charges or grid fees as the main reason for the hikes, and it was expected other suppliers would also increase their prices over the coming weeks.
Recently the Commission for Regulation of Utilities (CRU) said the number of energy customers in arrears “could spike” without any energy credits this winter.
In its ‘Decision Paper’ on customer-protection measures for the winter period, the regulator said it will likely be the first post-energy crisis winter with no Government energy credits, which since March 2022 have reduced household electricity bills by €1,500.
The CRU said there has been an increase in the level of indebted customers breaking repayment plans in the past year, with the value of arrears for both electricity and gas customers rising last winter.
It noted that 12% more accounts were in arrears across both domestic electricity and gas markets in May this year when compared to May 2024.
In its paper, the CRU announced additional measures to protect energy customers this winter, amid the rising levels of arrears and what it says are increases in the levels of customers contacting charities for help.
Daragh Cassidy from comparison site bonkers.ie said Electric Ireland’s announcement is “good news but a bit of a surprise”.
In relation to grid charges, he said that while other suppliers have passed on the increase in electricity network charges, Electric Ireland has chosen to absorb them for now.
“However, prices obviously still remain high. And some of the gas savings are going to be taken back by the Government next month when it increases the rate of carbon tax in the Budget again,” Mr Cassidy said.
“I’d question the wisdom of doing this when gas prices remain so high and 25% of households are behind on their gas bills,” he said.
“With some suppliers hiking prices and others reducing them or keeping them steady, it shows there is still competition and choice in the market, and I’d really encourage anyone who’s concerned about high energy costs to switch supplier. Discounts of up to 30% or more are available for an entire year to people who switch, which could save the average household well over €700 on their gas and electricity bills,” Mr Cassidy added.