SSE Airtricity has become the third energy company to announce a price decrease in the last week, with a reduction of up to 12 per cent to take effect from the start of November.
The move will see the standard unit rate it charges for electricity fall by 12 per cent and by 10 per cent for gas. The reductions will see a typical dual fuel customer save €385 a year, the company said. All of SSE’s domestic gas and electricity customers in the State will automatically have the reduced rate applied to their bills.
“We hope today’s announcement will be welcome news for households as we approach winter,” said managing director Klair Neenan.
“We’re acutely aware of the pressure people have been experiencing with the cost-of-living crisis and we recognise that this continues to be a difficult time for many. We recognise that volatility has impacted customers over the past number of years, and we want to provide price certainty for customers who want to manage their energy costs. SSE Airtricity is working on solutions that deliver on this promise in the coming weeks.”
Wholesale price reductions
Just 24 hours earlier Electric Ireland cut its home energy prices by up to 12 per cent from the start of November “in line with wholesale energy market reductions” in a move that could save some customers more than €400 on their combined electricity and gas bills over 12 months.
The average wholesale price of electricity in Ireland per megawatt-hour during August was €106.46, down 72 per cent from €387.63 in August of last year.
Electric Ireland said the decreases - to both the unit rate and standing charge - will equate to a saving of €17.67 per month on the average electricity bill and €18.06 per month on the average gas bill.
Its residential electricity customers will pay an average of €212 less over the course of a year while gas customers will save an average of €217, with dual fuel customers set to see an annual reduction of €429.
Energia last week announced an even larger price cut. Customers on the company’s smart meter electricity plan will see a fall of 20 per on their unit rates, or an average of €357 per year, based on their average annual bill. Its smart dual fuel customers will see a reduction of 20 per cent on their electricity and gas unit rates, or an average of €682 per year.
Pay-as-you-go provider Pinergy last month said it was cutting its standard electricity prices from October 1st by 9.5 per cent.
Budget supports
Rising prices have seen the typical household paying more than €2,000 extra for their energy each year, though a series of energy credits provided by the Government have offset this in part. Further supports are to be included in next month’s budget package, the Government has said.
Taoiseach Leo Varadkar yesterday called on energy companies to further reduce their prices while the Minister for Public Expenditure Paschal Donohoe responded to the price cuts by saying “this should only be the beginning”.
“I want to see the reductions that have been announced recently by a number of companies now be implemented by many others,” Mr Donohoe said, adding that energy prices have a “huge effect on living standards” and “the ability of people to get by”.
“As we continue to see a fall in wholesale energy prices - and we are seeing evidence that this is happening - we want to see all of that passed on to Irish consumers.”
Other energy companies have remained tight-lipped about their plans when contacted by The Irish Times in recent days, saying only that prices would be kept “under review” with discounts and tariff reductions passed on when possible.
