THE State's biggest electricity supplier has fuelled the energy price war with a new cut in prices – Charlie Weston
Electric Ireland, which is the retail name for the ESB, is to cut the cost of bills by two per cent from the middle of next month.
Now other suppliers have been called on to drop their prices.
The Electric Ireland reduction applies to all its 1.2 million customers, and not just those who move to it.
The decrease should cut bills by around €25 a year, including VAT, for a typical household. It takes effect from November next.
It is the first price cut by any supplier in four years, said Simon Moynihan of price comparison site Bonkers.ie. The price-cutting announcement comes just days after its competitor SSE Airtricity said it would offer a 20pc discount to new and returning customers.
SSE Airtricity, which supplies around one in five households, said it would discount its electricity price for those who sign up before the end of next month. This deal was the cheapest offer for electricity.
But the move by Electric Ireland will now mean it undercuts Airtricity.
Airtricity will end up as the second cheapest now.
Electric Ireland's best deal will now come in at €1,060 a year for electricity on average, the best in the market.
Mr Moynihan called on other energy suppliers to reduce their prices.