The country's biggest energy supplier is cutting its prices for the first time since 2020. Though prices will still remain well above normal.
Electric Ireland is the latest energy supplier to cut its prices following recent price drops by Pinergy and Energia.
The country's biggest energy supplier is cutting its standard unit rate of electricity by 10% and its gas unit rate by 12% from 1st November. It's also decreasing its standing charge for both electricity and gas by the same amount.
When both reductions are taken into account the average Electric Ireland customer will save around €212 a year on their electricity bills and €216 on their gas.
It's the first time Electric Ireland has cut its prices in over three and a half years.
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 Electric Ireland, and indeed all suppliers, over the past two years.
Last October Electric Ireland hiked its electricity prices by almost 40% and its gas prices by almost 50%. And just before that, in August 2022, it hiked its electricity prices by over 11% and its gas prices by over 30%.
So even though prices are falling, they’re falling from really high levels to begin with.
Indeed Electric Ireland'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 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.
We know that the last two years have been particularly hard for our customers, given the impact of much higher energy prices following the Russian invasion of Ukraine. We continue to offer the best prices we can for households, and have consistently provided one of the lowest standard electricity rates in the market. We are now lowering the rate further in line with wholesale energy market reductions and this rate will be automatically available to all our loyal customers – not just new customers.
Pat Fenlon, Executive Director, Electric Ireland
Assistance
The Government has committed to keeping the reduced rate of VAT on gas and electricity bills until next month. However it will no doubt come under pressure to retain the lower rate for much longer given energy prices will remain at very high levels for the foreseeable future.
The Government may also pay another round of energy credits this winter - though probably at a reduced level.
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.
Electric Ireland also provides several flexible payment options, including an 'equaliser' product that allows customers spread their energy costs in equal payments across the year or to take a payment holiday by agreeing a plan to pay their bills over 11 months instead of 12. So reach out to them if energy costs are a concern for you.
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.
Head over to our energy comparison page to review the options available to you. Whether you’re looking to compare electricity, gas, or dual fuel deals, bonkers.ie has got you covered.
