Electric Ireland Cuts Gas Prices by 4% While Holding Electricity Rates Steady

Electric Ireland has announced a reduction in gas prices by 4% for over 140,000 customers, effective from November 1, 2023. Alongside this decrease, the company will maintain its electricity prices for the upcoming winter months. The move is expected to save households an average of €57.56 annually on their gas bills.

The reduction in gas prices marks the fourth consecutive decrease for residential customers since November 2023. Cumulatively, these cuts have resulted in a 23.6% overall reduction, equating to savings of approximately €390 (excluding VAT and carbon tax). In contrast, Electric Ireland confirmed that residential electricity unit rates and standing charges will remain unchanged during the winter.

Pat Fenlon, executive director of Electric Ireland, emphasized the company’s awareness of the financial challenges facing its customers. “We believe today’s announcement will provide improved value for Electric Ireland customers as we face into the winter,” he stated. “This is the fourth consecutive decrease for our residential gas customers, who have benefited from combined reductions of 23.6%. Residential electricity customers have also seen a decrease of up to 19.34% across three reductions in the same timeframe.”

Market Context and Competitive Landscape

Electric Ireland, owned by ESB, claims to now offer the lowest Electricity Standard Variable Tariff (SVT) available in the market. This announcement arrives amidst a backdrop of rising energy costs, as other suppliers begin to increase their rates. On Tuesday, Energia disclosed plans to raise its electricity prices by 10.9% and smart meter electricity prices by 12.1%, leading to an additional €205 in annual costs for the average household. These increases are said to reflect “regulatory-approved non-energy charges” aimed at covering expenses related to security of supply, network upgrades, and grid investments.

In response to Electric Ireland’s announcement, Darragh Cassidy, head of communications at Bonkers, called it “good news but a bit of a surprise.” He pointed out that while other suppliers have opted to pass on increased network charges to customers, Electric Ireland has chosen to absorb these costs for the time being. Despite this positive development, Cassidy cautioned that energy prices remain high and some of the savings from gas price reductions may be offset by an upcoming increase in the carbon tax in next month’s budget.

Advice for Consumers

Cassidy noted that the varying actions of different suppliers demonstrate a competitive market landscape. He encouraged consumers to consider switching suppliers, highlighting that discounts of up to 30% or more may be available to those who make the change, potentially saving the average household over €700 on their gas and electricity bills. Additionally, he suggested that customers on smart tariffs should evaluate their consumption patterns to take advantage of lower rates during off-peak hours.

With no additional energy credits expected in the forthcoming budget, Cassidy remarked, “It’s never been more important for households to be on the cheapest energy deal possible.” As consumers navigate these changes, the focus remains on finding cost-effective solutions amid fluctuating energy prices.