The announcement comes on the back of falling wholesale energy costs in recent months and will put pressure on other suppliers to respond.
Pinergy has announced that it's decreasing its electricity prices for the second time this year.
It's a further sign that some normality is returning to the energy market.
The electricity supplier is decreasing its standard unit rate by just over 11% from 42.77 cent per kWh (ex VAT) to 37.97 cent (ex VAT) or 41.39 cent (inc. VAT) from 1st October.
Despite the price drop, Pinergy is keeping its mico-gen payment rate unchanged at 25 cent. However its daily standing charge will remain unchanged.
A household using an average amount of electricity will save around €200 a year.
The price drop from Pinergy will no doubt be welcome news to its customers as we head into the colder autumn and winter months. And it means Pinergy's standard unit rate is now among the lowest in the market.
Will other suppliers follow suit?
It's expected other suppliers will announce price decreases of around 10% to 20% over the coming weeks as their hedging strategies unwind and they buy energy at today’s slightly lower wholesale prices.
However wholesale electricity prices in Ireland are still around THREE times normal levels. And wholesale gas prices are around DOUBLE normal levels. So there’s a limit to how far prices for consumers can drop for the time being. And there’s going to be no energy ‘price war’ or a return to even remotely normal energy prices for this winter.
Back in 2020, before Covid and then the war in Ukraine wreaked havoc with energy prices, households were being charged around 20 to 22c per kWh on average (inc. VAT) for their electricity. Even after this price drop, Pinergy’s second of the year, its standard unit rate is still over 41 cent. So it's double that. And this compares to an EU average of around 26 cent.
What's the outlook?
The energy market still remains volatile with gas and electricity prices on wholesale markets still at levels that are way above normal.
It’s going to be another very expensive winter to heat and light our homes.
However this price drop, as well as Yuno Energy’s recent entry into the market, which is offering a rate of just over 38 cent (inc. VAT) means households can save some money by switching.
The worst of the energy crisis seems to have passed. But the crisis is by no means fully over.
After our price reduction in March, we said that we would continue to review pricing. Today, we are pleased to announce this second decrease for our customers as wholesale electricity pricing has eased in recent months. However, the energy crisis has not gone away and wholesale pricing remains inflated and volatile.
Pinergy CEO, Enda Gunnell
The Government has committed to keeping the reduced rate of VAT on gas and electricity bills until October. However it will no doubt come under pressure to retain the lower rate for much longer given prices will remain at very high levels for the medium term.
The Government may also pay another round of energy credits this winter - though perhaps at a slightly 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.
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 money by switching.