Over 200,000 customers will benefit from the price reductions, which will see the average dual fuel customer save over €120 a year on their energy bills.
Enegia has finally joined the energy price party by announcing a long overdue reduction in its gas and electricity rates.
Since the start of the year we’ve seen big rivals Electric Ireland, Bord Gáis Energy and SSE Airtricity all reduce their prices in response to the plummeting price of energy on wholesale markets. However Energia has stayed quiet until now.
Thankfully that’s changed with today’s announcement from Energia that it’s reducing its prices from 1 June.
From 1st June Energia is reducing its gas prices by 12% and its electricity prices by 3%.
The reductions will apply to both new and existing customers. If you’re an existing customer then the price discount will apply on top of any other discounts you’re already getting.
The price drop means dual fuel customers will save an average of around €122 per year, while gas customers will save around €94 per year and electricity customers €28 per year.
Commenting on the back of today’s announcement, Geoff Codd, Head of Marketing at Energia said; Last year marked our 20th year in the Irish market and today we supply 25% of the island of Ireland’s total electricity requirements and 21% of the island’s total wind power, meeting the energy needs of over 200,000 homes. As an established provider of 100% green energy we actively support communities all across Ireland and are committed to providing value and a quality experience for our customers”.
Is it enough?
While any savings for hard-pressed households are to be welcomed in today’s uncertain times, the question as to why larger savings aren't being passed on to consumers still arises.
Energy prices are down hugely on wholesale markets over the past 12 to 15 months, by up to 50% in some cases, and these savings aren’t being fully passed on to consumers.
The 3% electricity price reduction pales in significance to the falls we’ve seen in the price of electricity recently. Even the gas reduction seems modest enough. Meanwhile, delaying the introduction of the price decrease until June also seems unfair as by this stage it’s summer when energy demand in the home usually plummets.
Since the outbreak of Covid-19 we’ve seen the banks offer a moratorium on mortgage payments, health insurers offer sizeable rebates on premiums and broadband suppliers offering free data and extra TV channels. So consumers might be right to ask whether energy companies are doing enough?
Switch and save
For those seeking better value the best option at the moment is to switch.
There’s huge competition for new customers right now among all the suppliers with discounts of over 30% on offer for an entire year in some cases, which would save the average household around €400 a year on their energy.
It’s quick and easy to switch and with more time being spent at home than ever before, energy usage in households is likely to reach record levels, meaning it’s never been more important to ensure you’re on the most competitive tariff.