Bord Gáis Energy announce price cut of 3.5% and 2.5%
Irish energy supplier to lower prices to 'reflect recent fall in wholesale gas prices'
Today, Bord Gáis Energy one of Ireland’s largest energy suppliers announced a price drop for residential energy customers. Bord Gáis Energy is to cut the unit rate of gas by 3.5% and the unit rate of electricity by 2.5% (roughly €54 a year for the average household).
The changes will come into effect from 16th March 2015 for residential gas and electricity customers. The reduction in the gas price represents a saving of €29.47 on the average customer bill, while the reduction in the electricity price represents a saving of €24.91 on the average bill. Bord Gáis Energy has 333,000 residential gas customers and 277,000 residential electricity customers all of whom should benefit from these price cuts.
First to cut prices Electric Ireland introduced an electricity price cut of almost 2.5% in November 2014. Bord Gáis Energy is the first supplier since then to cut prices amidst recent calls - from consumer groups and politicians alike - to lower costs for consumers in the wake of dropping wholesale gas costs. Bord Gåis Energy is owned by UK energy company Centrica which also own British Gas.
On January 9th, British Gas announced a price drop to standard plan customers of 5%, which the supplier says will decrease bills for these customers by £37 per year on average. ‘Constantly reviewing our pricing’ Dave Kirwan, Chief Operating Officer, Bord Gáis Energy said: “We are constantly reviewing our pricing to make sure we offer the best value to all our customers, and help them manage their energy bills.
With the reduction in international wholesale energy costs, we now have the opportunity to drop our prices in both gas and electricity and we are happy to be able to do so. We will continue to monitor wholesale and other costs and should further savings occur we will seek to reflect that in our prices. I am also happy to confirm those customers who signed up to our new fixed rate products in gas and electricity will benefit from these reductions also.” ‘Not a minute too soon’ While the news is met with applause by many, the question remains: as in the price rise times, will other suppliers follow suit?
Eoin Clarke, Head of Switcher.ie, said of the announcement: “With wholesale energy costs continuing to drop, a cut to unit rates by a large energy supplier is well overdue. Today’s announcement is to be applauded and the other major suppliers must do the right thing for consumers and follow up in Bord Gáis Energy’s footsteps. “However, given the huge reductions in wholesale prices - which make up around half of energy bills - we believe unit rates can and should be cut even further. “But while these bill cuts are welcome, the biggest savings can still be made by switching to a cheaper tariff. Rather than waiting for modest cuts to unit rates, consumers should take control of the bills by switching to one of these more competitive deals. There is a whopping €307 per year difference between the best deal on the market and the average standard tariff.’