The price cut is the supplier's second since November and will come into effect at the end of February.
Bord Gáis Energy (BGE) is the latest supplier to reduce its prices following recent price cuts from Electric Ireland and SSE Airtricity.
The country's biggest gas supplier is cutting its unit rate of gas by 9.5% and its electricity by 10% from 29th February.
BGE is also decreasing its standing charge for both gas and electricity by 8%. 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 €190 a year on their electricity bills and €141 on their gas bills.
It's the second time BGE has cut its prices in just four months. It also dropped its prices by 15.5% in November.
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.
In October 2022 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 electricity prices are still around 90% above where they were in 2020 and its gas prices over double previous levels. So it'll still be another expensive winter for customers to heat and light their homes.
But thankfully we're slowly seeing prices return to more manageable levels.
Will prices fall further?
Wholesale gas and electricity prices still remain high. Indeed they're both close to double normal levers. So there's a limit to how far prices for consumers can drop for the time being.
However it does look like there is finally some light at the end of the tunnel for energy customers and the worst of the crisis seems to have passed. And based on current wholesale prices, we should see another 10% to 15% drop in prices from BGE, and indeed all the main suppliers, in the second half of the year.
Today’s announcement marks our second reduction in just four months. These reductions combined with the November price drop will result in dual fuel customers saving almost €1,000 per annum on their bills. 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.
Dave Kirwan, Managing Director, Bord Gáis Energy
Get further discounts as a new customer with Bord Gáis Energy
As well as the reductions outlined above for its existing customers, BGE is offering further discounts to new customers who switch to the supplier.
Right now new customers can get an additional 22% discount for an entire year when they switch their electricity to BGE and an extra 16% discount when they switch their gas.
BGE is keen to point out the help and support it offers its customers.
It says that it's invested in hiring additional customer care teams in recent months 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're 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 even more on your energy
If you’re looking to save money on your energy bills, why not switch supplier and save even more?
Even though prices are dropping, households can save hundreds more by switching. As well as the reductions we’ve seen announced recently, suppliers are offering further discounts of up to 20% or more to new customers who switch.