Consumers will finally see a reflection in the fall of wholesale energy prices in their pockets.
It’s the news that home owners have all been waiting for - a reduction in energy prices and increased savings on bills - hurrah!
Electric Ireland is the first energy provider to announce a reduction across its residential gas and electricity prices for its customers, of whom there are approximately 1.2 million.
So what has changed and what can you save?
Gas & electricity price reduction
Electric Ireland has announced a 2.5% reduction in its residential electricity prices, which will see the average electricity customer save around €22 on their annual electricity bill.
Ireland’s leading energy supplier has also announced an 11.5% price reduction across its residential gas prices which will see customers save €78 on average on their annual gas bill.
That means that dual fuel customers can significantly reduce their energy bill by making a combined saving of up to €100 annually.
The price reduction reflects a decrease in the standard unit price for gas and electricity and will apply for both new and existing customers.
The price changes will come into effect from April 1st.
Electric Ireland also launched a new green electricity price plan back at the beginning of January as part of its “We’re Brighter Together” marketing campaign.
Commenting on the price reduction, Marguerite Sayers, Executive Director, Electric Ireland said:
“We know value continues to be important to our customers so we are delighted to reduce prices for our 1.2 million residential energy customers. This is Electric Ireland’s largest reduction in gas prices since we began selling gas and means our dual fuel customers will benefit from a combined reduction of €100 per year.
“In addition, we provide customers with a long-standing discount rate that doesn’t disappear after a year, innovative new products and the right energy advice. This demonstrates our commitment to offering great value and service in a very competitive market.”
Electric Ireland currently has over 1 million electricity customers and almost 140,000 gas customers according to recent figures from the Commission for Regulation of Utilities.
Context for price change
The price reduction will be a welcome change for hard-pressed consumers who have been waiting for, and long overdue, a reduction in gas and electricity prices on this island.
The changes from Electric Ireland will come into effect on April 1st – a year after the supplier increased its prices last.
This is the first energy price decrease benefitting Irish consumers since Bord Gáis decreased its gas prices by 4% back in October 2019. However, it also increased its electricity prices by 2.5% at the same time.
The news from Electric Ireland comes as wholesale energy prices on international markets continue to fall, with the trend gaining momentum for the last year and a half - check out this article where we explain the trend further.
Wholesale gas prices were seen to drop in January by a massive 52% year-on-year, so it’s about time that consumers saw this reflected in the price they are paying.
Similar can be said for electricity with its wholesale price falling in January by 47% year-on-year.
The likelihood is these won’t be the only price changes in the coming weeks so we would urge consumers to keep your eyes peeled for more great savings coming your way!
Let us know your thoughts
We’d like to hear what you think about the reduction in prices from Electric Ireland? Is it a welcome change?