ELECTRICITY AND gas prices are to fall significantly from the end of April following a price review by the Commission for Energy Regulation (CER).
The ESB is to drop its prices by 10 per cent while Bord Gáis is to reduce the cost of gas by 12 per cent.
The widely anticipated recommendations from the commission were confirmed yesterday afternoon by Minster for Energy Eamon Ryan.
He had asked the commission to bring forward its annual price review which had not been scheduled to take place until October in order to take account of falling energy prices on global markets. “It is a positive news story for the country at a time when money is tight. It will help our competitiveness, help jobs in this country, help householders who are on a tight budget,” Mr Ryan said.
Bord Gáis Energy and Airtricity have confirmed they will be matching the price reductions granted to the ESB. Consumers who switch to either provider will be paying at least 20 per cent less for their electricity by the summer.
Bord Gáis said the 50,000 people who had already switched from the ESB since it launched its domestic service two weeks ago will automatically benefit from the new lower rates. It has committed itself to giving customers who join its network discounts of between 10 per cent and 14 per cent on the regulated price which the ESB charges.
In addition to a minimum saving of 10 per cent on the ESB unit rates in the first year, with a committed discount of at least 5 per cent in the second year, the company is offering a 2 per cent loyalty discount to its natural gas customers and a 2 per cent discount to all customers who pay by direct debit.
Last Friday Airtricity introduced domestic rates that are 13 per cent lower than the ESB and 3 per cent less than the Bord Gáis basic price, making it the cheapest stand alone electricity provider on the market.
Airtricity managing director Kevin Greenhorn confirmed yesterday evening it would also be dropping its prices in line with the ESB discount. About 5,000 people have signed up with the company in recent weeks.
CER chairman Michael Tutty dismissed the contention that the commission was keeping prices artificially high. Speaking on RTÉ’s Six One News, he said the commission sets prices at a level to allow the ESB cover its costs. In addition, newer operators in the electricity market Bord Gáis and Airtricity are allowed to sell below cost to allow them gain share in the domestic market where the ESB has 99 per cent dominance.