Bord Gáis Energy has announced a 5% drop in its standard electricity unit price and 2.5% drop in its standard gas unit price, saving customers €67 a year.
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Despite the lovely Indian summer we’re enjoying at the moment, it won’t be long before we’re wrapping ourselves in our winter woollies and cranking up the heating at home.
With colder weather inevitably comes bigger gas and electricity bills. And this year, those bills could be some of the biggest in recent memory, with the annual PSO Levy set to increase by nearly €14 for all electricity customers.
But don't fret! There is some good savings news for Ireland’s energy customers this morning, particularly for those who get their gas or electricity from Bord Gáis Energy.
The supplier has taken a hatchet to its standard unit prices and announced a 5% electricity price drop and a 2.5% gas price drop, effective from October 1st. These price drops make Bord Gáis Energy’s standard electricity and dual fuel prices the new lowest in the country.
Let’s take a look at what the price drop will save the supplier’s 650,000 customers.
5% electricity price drop
From October 1st, Bord Gáis Energy’s standard unit price for electricity will fall from 15.81 cent (excluding VAT) to 15.02 cent (excluding VAT).
With all taxes and charges factored in, the drop means a year of electricity with the supplier will cost the average household €1,121, which is a saving of €47.50.
2.5% gas price drop
The supplier’s 2.5% gas price drop will take the standard unit rate for the fuel down from 5.06 cent (excluding VAT) to 4.93 cent (excluding VAT).
That makes for an annual gas bill of about €924 for average households, which is a saving of €19.50 a year, once all taxes and charges are included.
Saving of €67 a year
Customers who get both their gas and electricity from Bord Gáis Energy stand to save the most of course, with a total energy bill saving of €67 a year on the way from October 1st.
And that is more than enough to offset the pending PSO Levy increase.
Wholesale prices continue to fall
This morning’s price drop from Bord Gáis Energy is certainly good news for the supplier’s 650,000 customers and it will hopefully prompt other gas and electricity companies to follow suit and announce cuts of their own.
However, if you’re not a Bord Gáis Energy customer and are feeling envious of the supplier's newly reduced prices, we have some news for you. The biggest savings are nearly always reserved for customers who switch suppliers, rather than wait around for price drops.
Wholesale gas prices are down 35% on last year and many suppliers are passing these savings on to customers in the form of sign-up discounts. In fact, there is up to €360 to be saved by households who switch today.
This morning's price drops from Bord Gáis Energy mean the supplier will have the lowest standard unit rates for electricity and dual fuel in Ireland from October 1st. It will be interesting to see if any other supplier is bold enough to under cut Bord Gáis Energy's new rates.