Electric Ireland Cuts Gas Prices While Rivals Raise Electricity Rates

Electric Ireland has announced a surprising reduction in gas prices, decreasing rates by 4 percent, while maintaining its current electricity prices. This decision comes as households prepare for the winter months and follows a recent announcement from competitor Energia, which is set to increase its electricity rates by as much as 12 percent.

In a statement released on the morning of October 25, 2023, Electric Ireland emphasized its commitment to providing value to customers. The 4 percent cut in gas unit rates and standing charges, effective from November 1, 2023, is expected to result in an annual saving of approximately €57.56 for the average gas bill. This marks the fourth consecutive decrease for residential gas customers since November 2022, with total reductions now amounting to nearly 25 percent, or €390 over the past year.

Electric Ireland has also highlighted that its residential electricity rates will remain unchanged despite rising operational costs. Over the past two years, the company has reduced residential electricity unit rates by 20 percent, translating to annual savings of around €376 for its customers.

Conversely, Energia’s recent announcement of electricity price hikes reflects increasing costs in the sector. The company stated that the increases, effective from October 2023, are “now unavoidable” due to significant rises in charges from the electricity system operator and network providers. The official statement indicated that these regulatory-approved non-energy charges are necessary to recover costs related to ensuring a secure energy supply, addressing network constraints, and investing in the electricity grid.

Energia’s electricity customers will face an average increase of 10.9 percent in their annual bills, which equates to an additional €3.94 per week. For dual fuel customers, the hike will be 6 percent, adding about €3.92 to weekly expenses. Customers enrolled in Energia’s Smart Meter electricity plan will see an increase of 12.1 percent, translating to €3.73 more per week, while those on Smart Meter dual fuel plans will experience a 6.2 percent rise, or €3.71 per week.

This pricing dynamic may exert pressure on other energy providers to stabilize their prices despite the rising costs associated with maintaining the national grid. As winter approaches, households will be closely monitoring these changes and the broader implications for their energy bills.