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We aren’t even a week into January and the energy price cuts are coming thick and fast!
Today, Flogas announced a 2.5% cut in the standard gas unit rate for all of its residential customers. The price change will come into effect on February 1st and will save customers about €21 a year.
Saving of €21 a Year
Flogas customers on their standard tariff with the average annual consumption of 13,800 kWh are currently paying around €960 a year for gas.
This 2.5% price cut will bring the supplier's unit rate down to 5.05 cent per kWh (excluding VAT), meaning that customers will pay about €939 for a year’s worth of gas, once VAT, Carbon Tax and Standing Charges are added in.
And that’s a reduction of €21 on Flogas’ existing rates.
Wholesale Prices at a 5-Year Low
This move represents the second time that Flogas has cut prices in the last 12 months, following a 3% unit rate reduction last February.
The announcement also comes quickly on the heels of news that wholesale gas prices are now at a 5-year low, due to unexpectedly mild weather last year. It’s encouraging to see Flogas - and others (Electric Ireland cut its gas prices on January 1st) - passing part of these wholesale savings on to customers.
20% Direct Debit Discount
Flogas is also currently offering a 20% discount to new customers who sign up to its direct debit plan.
At an annual cost of about €798 a year to the average Irish household (including taxes and charges), it is the cheapest gas only offer on the market at the moment, and it's available for sign up through bonkers.ie.