The price cut will no doubt be welcomed by customers as we head into the colder autumn and winter months.
Bord Gáis Energy (BGE) is the latest supplier to drop its prices following recent price decreases from all the main suppliers.
The country's biggest gas supplier is cutting its gas prices by 15.5% and its electricity prices by 15.5% from 9th November.
It's the first time BGE has cut its prices since early 2020.
BGE is also decreasing its standing charge for both gas and electricity by 15.5%. Most suppliers significantly hiked their standing charges during the peak of the energy crisis, which proved controversial, as no one can avoid them no matter how little energy they use, so it’s good to see these hikes being reversed.
When both reductions are taken into account the average household will save around €357 a year on their electricity bills and €274 on their gas bills.
Prices still high
Although today's announcement is obviously good news, we need to remember that it comes on the back of some hefty price increases from BGE, and indeed all suppliers, over the past two years.
Last October BGE hiked its energy prices by almost 50%. And before that, in April 2022, it hiked its electricity prices by almost 30% and its gas prices by over 40%.
So even though prices are falling, they’re falling from really high levels. Indeed BGE's energy prices are still around double what they were in 2020. So it'll still be another expensive winter for customers to heat and light their homes.
Will prices fall further?
It's unlikely in the very short term. The energy market still remains volatile with gas and electricity prices on wholesale markets still at very high levels.
For example the wholesale price of electricity in Ireland is still around 250% above normal levels while wholesale gas prices are around double what we saw in 2020 before Covid and then the war in Ukraine wreaked havoc with energy prices. So there's a limit to how much further prices can drop for the time being.
However it does look like there is finally some light at the end of the tunnel and the worst of the energy crisis seems to have passed. And based on current wholesale prices, we should see another 10% to 15% drop in prices in the spring.
We know energy costs have been hugely challenging for customers over the past two years. Whilst the energy market remains uncertain and volatile, we are happy to be in the position to pass on these reductions to our customers today.
Dave Kirwan, Managing Director, Bord Gáis Energy
BGE has said that it's invested in hiring additional customer care teams and has launched an Energy Support Fund, which to date has given out €5.2 million to its most vulnerable customers. The company also continues to offer a range of supports for customers who face challenges in managing their bills. For any customer seeking information on this, they are encouraged to get in touch with BGE as soon as possible.
In the meantime, to help you cope with high energy prices, here are 16 ways to use less electricity and save money.
And if you're struggling to pay your energy bills, here are a range of supports that are available.
Switch and save on your energy
If you’re looking to save money on your energy bills, why not switch to a cheaper supplier?
Even though prices are still high, you can still save hundreds of euro by switching to a discounted rate.