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 become the first supplier since 2020 to announce a decrease in its energy prices in a further sign that some normality is returning to the energy market.
The electricity supplier is decreasing its standard unit rate by almost 9% from 46.77 cent per kWh (ex VAT) to 42.77 cent per kWh (ex VAT) from 31 March.
However its standing charge will remain unchanged.
A household using an average amount of electricity will save around €183 a year.
Pinergy only increased its prices last month when it hiked its standard unit rate by almost 18%. But in response to falling energy prices on wholesale markets in recent months it's been able to reverse some of that hike.
Will other suppliers follow suit?
Other suppliers will no doubt come under pressure to follow Pinergy's reduction.
However it's important to remember that Pinergy's electricity prices were among the highest in the market before today's announcement.
This reduction now makes them one of the cheaper suppliers - if you could use that word in today's market. But its prices are still around 8% above Electric Ireland's for example - the biggest electricity supplier in the country. And its prices are only marginally cheaper than Bord Gáis Energy and Energia. So suppliers may not immediately respond.
Whether suppliers respond will also depend on their hedging strategies. See our explainer on why households' energy bills haven't been falling yet.
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. And we're a long way from prices returning to the more normal levels we last saw in 2020. Back then Pinergy’s standard unit rate was under 19 cent (ex VAT). So even after today’s announcement it’s still double that.
But the outlook for hard-pressed households is much more positive than even a few weeks ago and hopefully we'll see more widespread reductions in the second half of the year.
The peak of the energy crisis seems to have passed.
We had previously committed to reducing electricity prices when circumstances and market conditions allowed. With recent reductions in the wholesale costs of electricity, we are now pleased to be able to announce this price decrease. However, the outlook on global wholesale markets continues to show inflated and volatile pricing over the medium term.
Pinergy CEO, Enda Gunnell
Assistance
In March the next €200 electricity credit will hit every household's account. And there are talks about the Government paying another energy credit early next winter.
The Government has also just committed to keeping the reduced rate of VAT on gas and electricity bills until October. However the Government will no doubt come under pressure to retain the lower rate for much longer given prices will remain at near record highs for the medium term.
Switch and save on your energy
If you’re looking to save more on your energy bills, why not switch to a cheaper energy supplier?
All energy suppliers in the Irish market are competing for new customers, and as such, they are still offering enticing discounts. So, despite prices on the rise, it’s still worthwhile making the switch.
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 you covered.
You can review the steps involved in running an energy comparison in this guide, and learn what’s involved in the switching process here.
It's also easy to compare deals and prices for a range of other products and services on bonkers.ie, such as broadband, phone and TV deals, insurance types and banking products.
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