Pinergy cuts their prices and Bank of Ireland increases deposit rates - RTE Radio 1
Today’s announcements from Pinergy and Bank of Ireland provide welcome news to Irish consumers. First, Pinergy announced they would reduce their standard electricity unit rate to one of the cheapest on the market. Then, Bank of Ireland announced it would finally begin offering competitive rates to savers.
Daragh Cassidy, Head of Communications at bonkers.ie, appeared on RTE News at One to discuss the news.
Listen to the interview above or look at the main points discussed below.
Main points from the interview:
- From the 1st of October, Pinergy will lower its standard unit rate for electricity, potentially lowering household bills by around 9.5%.
- This is welcome news for Irish consumers. However, the new rate is still nearly double the price available from Pinergy pre-Covid. While price decreases are always a positive, they are coming from a very high level.
- Over the coming weeks, we can expect to see some of the major energy suppliers begin to introduce modest cuts to the price of their electricity.
- Hedging contracts have meant that suppliers are fixed into higher prices. As these contracts expire, we can hopefully expect some price reductions.
- Over the past six months, the wholesale price for electricity has still been over three times what was normal before Covid-19, meaning that the likelihood of bills returning to normal levels anytime soon is low.
- From the 8th of September, Bank of Ireland will increase the rates it offers to deposit holders.
- On its Super Saver account, the bank will offer rates of 3% on the first year, falling to 2% the ensuing year.
- This news will hopefully encourage Permanent TSB and AIB to follow suit, and increase the rates it offers to savers.
- However, this increase may be to the detriment of mortgage holders and prospective buyers, as higher rates will be passed on to compensate.
- Lots of Irish savings are currently sat in instant access accounts. The rate of interest on these accounts is very low, with Bank of Ireland currently only offering 0.1%. Therefore, if you have the option of locking money away for a period, it would be best to put savings in a longer term deposit account.
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