THE STATE’S power struggle intensified yesterday when Airtricity, the third player in the domestic electricity market, introduced rates which are 13 per cent lower than the ESB and 3 per cent less than the basic price offered by Bord Gáis Energy.
Airtricity had been offering electricity to new customers for 10 per cent less than the ESB, the same discount being given by Bord Gáis Energy. The new prices make it the cheapest stand-alone electricity provider on the market, although existing Bord Gáis customers who pay by direct debit can save a total of 14 per cent compared with the ESB.
“There is an appetite for switching amongst Irish consumers in the current climate,” Kevin Greenhorn, managing director, of Airtricity Supply said.
About 5,000 people have signed up with the company in recent weeks.
Regulations governing ESB’s pricing prohibit it from lowering its prices in response to Airtricity or Bord Gáis Energy’s newly announced rates, but the Commission for Energy Regulation is set to approve substantial price reductions from the ESB within the next two weeks after which the unit price of its electricity is expected to fall by at least 10 per cent.
Mr Greenhorn said the company would maintain its discounts irrespective of what the ESB does in the coming weeks.
A Bord Gáis Energy spokeswoman told The Irish Times that it would not be lowering its prices further to match the new rates. “They are as they are,” she said.
Airtricity hopes its green credentials will encourage customers. The company uses renewable resources to generate power.
Mr Greenhorn said the company had not experienced anything like the same level of take-up as that enjoyed by Bord Gáis, which is getting about 3,000 new sign-ups each day, something he attributed to not having the “deep pockets and brand recognition”.
