The country's biggest energy supplier has also committed to keeping its electricity prices unchanged for the foreseeable future.
In somewhat of a surprise move, Electric Ireland has announced that it's cutting its gas prices by 4% from 1st November.
The move will save the average household around €58 a year on their bills and will provide a much needed boost to households that have been grappling with high energy costs over the past few years.
Electric Ireland is also keeping its electricity prices unchanged over the winter months.
In recent weeks, both Flogas and Energia have increased their electricity prices citing higher network charges. These are the charges that EirGrid and ESB Networks pass on to suppliers for the upkeep of the electricity grid. As consumers, we don’t see these charges on our bills as they’re incorporated into the unit rate that we pay for our energy as well as the standing charge. But around 30% of the total cost of a household’s gas and electricity bill is made up of these costs.
Last month, the energy regulator hiked the charged by close to €30 a year per household and the year before it went up by just over €100. Another small hike is expected next year.
However, Electric Ireland has decided to absorb these hikes for now and presumably take the hit to its profits. A nice win for the consumer!
This is the second time that Electric Ireland has reduced its gas prices in a year. Last year it cut its gas prices by 3% in November also.
As well as this Electric Ireland is offering great deals to new customers to entice them to switch. But more on that in a bit...
Prices still high
Although this announcement is obviously good news, and a welcome boost for households, 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 few years.
Even after this gas reduction, Electric Ireland’s fourth in two years, its gas prices remain pretty much double the level they were at before the war in Ukraine broke out.
So it’ll still be an expensive winter to heat and light our homes.
Electric Ireland is pleased to announce a further reduction in prices for our residential customers today. We are acutely conscious of the financial pressures facing our customers and we believe today’s announcement will provide improved value for Electric Ireland customers as we face into the winter.
Pat Fenlon, Executive Director, Electric Ireland
Get up €100 cashback as a new customer with Electric Ireland
As well as the reductions outlined above for its existing customers, Electric Ireland is offering further big discounts to new customers.
Right now new customers can get a discount of up to 30% on their electricity for a full year as well as up to €100 cashback.
And gas customers can get a further 22% discount on their bills too.
And if you're already a customer of Electric Ireland, don't worry. There are still great deals from other suppliers for you to switch to.
Assistance with your energy bills
Electric Ireland says it continues to provide a range of initiatives to support customers who are struggling to pay their bills and that it only ever resorts to disconnecting a customer as a last resort.
It provides flexible payment options, including an "equaliser" product that allows customers to 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.
It's also setting up a temporary Compassionate Assistance Fund for this winter. Applying the learnings gained through its previous Hardship Fund, Electric Ireland will work with key partners such as MABS, Saint Vincent de Paul, and Alone to identify customers who are struggling with their bills and provide them with direct financial relief via their electricity or gas account.
Another way to cope with high energy prices is to consume less, so 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 other supports that are available.
Switch and save on your energy costs
With no energy credits expected in next month’s Budget, and prices still high, some households may struggle to stay on top of their bills this winter.
Yet you could save around €700 to €800 a year on your gas and electricity in minutes by switching supplier, which will provide far more support than any energy credit the Government can provide.
At bonkers.ie, we’re proud to play our part in helping Irish households switch and save on their bills, which is more important than ever this year.
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 can help you save.
