Energy companies slashing discounts for customers looking to switch

Discounts that have been available for years for people who regularly change energy provider have been slashed in recent weeks as companies seek to offset the impact of rising wholesale prices by targeting switching consumers in addition to raising their standard unit rates.

While there are still some incentives on offer to those who switch providers, the potential savings have been reduced from the 25 to 40 per cent range that was commonly available earlier this year to little more than 10 per cent in most cases.

Energy providers have this month introduced price hikes of between 20 and 50 per cent. The recent increases come on the back of a series of price rises over the last 18 months which will see a typical domestic customer paying about €2,000 more for energy over the year than they did in 2020.

The reduction in the discounts available means that active switchers will now miss out on potential savings of as much as €1,000 over the course of the next year.

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[ Looking to save money by switching energy provider? Don’t expect a big discount deal anymore ]

According to the Commission for Energy Regulation (CRU), switching customers will be able to save little more than €300 by moving from one provider to another.

All the leading companies told The Irish Times that the discounts offered as incentives have been dramatically reduced.

Electric Ireland said that it was currently offering a €150 welcome bonus to new customers which is paid in the form of energy credits on the bill plus a discount of up to 8.5 per cent on standard unit rates if they sign up to a direct debit and paperless billing.

A spokesman for Bord Gáis Energy said that discounts “vary significantly but can start at 5 per cent”. He said that people who opted in to paperless billing and paid by direct debit could potentially avail of higher discounts. The discounts on the table were “subject to change at any time and particularly at present”.

He said the company had reviewed its discounts recently, “having maintained them as high as possible and for longer than many competitors”.

“Customers have previously been able to access higher discounts but, as a result of the unprecedented and prolonged high prices and volatility we face in the wholesale energy market, discounts have been reduced.”

Energia, which was offering discounts of around 40 per cent at the start of the summer, said it was now offering a 10 per cent discount on electricity and gas to those switching, while Airtricity and Flogas said theirs were between 10 and 15 per cent.

A spokeswoman for the CRU said that while prices have increased, “customers can still get better deals” by renegotiating with an existing supplier or switching.