Bord Gáis Energy will reduce its gas prices by 4% saving customers around €31 a year. However electricity prices will rise.
As the evenings draw in and the weather turns more wintery we will naturally start to transition our lifestyle from outdoors to indoors. That means a couple of things: we're probably going to watch a hell of a lot more Netflix, we're all going to catch colds off one another, and tea consumption will skyrocket!
It also means we're going to spend more money on heating our homes.
So as the demand for electricity and gas is due to increase, some mixed news has come from Bord Gáis Energy, Ireland's largest gas supplier. So what's changed?
Ups and downs
First the good news!
Bord Gáis Energy (BGE) has announced today that it will decrease its gas prices by 4% from 28 October. This will represent a saving of €31.60 per year for the average customer.
However, it was also announced that it will increase its electricity prices by 2.5%, which will see customers pay an extra €16.77 per year on a typical electricity bill.
Meanwhile dual fuel customers with BGE will see a decrease of €14.83 per year on their combined gas and electricity bill.
However, on 8th October we will see Budget 2020 announced, which is expected to include a significant increase in the carbon tax, which will directly affect gas prices.
On the flip side, we will also see a decrease in the PSO levy from 1st October which applies to electricity and which may soften the impact of the electricity price increase.
As a result, these Government levies will negate today's price movements somewhat.
Factors beyond our control
Speaking about the rate changes Colin Bebbington, Retail Director at BGE said: “We have continually committed to passing on savings to customers where possible and today’s announcement regarding our gas price reduction further demonstrates this."
“Factors beyond our control have led us to need to increase electricity prices, however, we will continue to monitor costs closely and do all we can to ensure that our customers are receiving the best possible prices for their energy.”
The supplier was also quick to point out that customers can save more with its Rewards Club, in particular its partnership with Tesco which has saved customers over €13 million.
BGE customers who register their Tesco Clubcard will receive Clubcard points every time they pay their energy bill. For every €2 you pay off your bill, you’ll receive one Clubcard point. If you're a Tesco customer you can also use your Clubcard vouchers to double the savings off your gas and electricity. So a €2.50 Tesco Clubcard voucher becomes €5 off your next energy bill and a €5.00 voucher becomes €10 off your bill.
What can customers do?
Regardless of today’s announcement, energy customers should remember that there are lots of ways to cut down on energy costs.
At the moment switching supplier could save the average customer around €400 a year while reducing your energy consumption and making simply changes around the home such as using LED lightbulbs and turning down the thermostat by one degree could save you hundreds more.