Pinergy set to lower its electricity prices -Today FM

In an unexpected turn of events, Pinergy has announced that it will be reducing its electricity prices. 

Daragh Cassidy, Head of Communications at bonkers.ie, appeared on The Last Word to discuss this unforeseen announcement and whether other energy suppliers are likely to follow suit. 

Listen back to the interview above or take a look at the main points below

Main points from the interview

• Pinergy, the prepay electricity supplier that supplies 30,000 homes with electricity has announced it is dropping its charges by 7%.
• It is suspected that Ireland has hit its peak gas and energy prices. It is now expected that energy prices will begin to drop. 
• Many consumers may be confused as to why their petrol and home heating bills are not cheaper, seeing that wholesale oil prices on the world market are now cheaper than they were before the invasion of Ukraine.
• If you look at gas, which is used to generate a lot of the electricity here, it is still trading at 2.5 times higher than the normal price. If gas prices go up, so do electricity prices.
• At one point during the summer of 2022, wholesale gas and electricity prices went up by 1000% however, suppliers chose to shield their customers from the worst of the price increases seen on the wholesale market.
• As a result of this, people will continue to be paying higher prices for gas and electricity for the foreseeable future to make up for the high wholesale prices the suppliers were subjected to.
• Unfortunately, because Ireland has little to no oil, coal or gas here, we have to rely on foreign companies to supply us with these fuels. 
• These foreign companies are the companies that have been making insane profits from the energy crisis, and we aren’t in a position to tax them.
• Daragh believes that the Government should keep the reduced 9% VAT rate on gas and electricity as the Government can afford it.
• This is because the Government is taking in more money on gas and electricity in tax than it did last year. 

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