Flogas, the energy retailer owned by London-listed DCC, said it would cut electricity and gas prices for its customers by up to 30 per cent from November 6th.
The utility company said it was committed to passing through recent wholesale energy price reductions to both its gas and electricity customers as winter approaches.
The reductions, which apply to all variable customers including those with a smart meter, will equate to a saving of €74.58 per month on the average electricity bill, or €895 annually. The savings on an average natural gas bill will be €64.84 a month or an annual saving of €778, Flogas said on Friday.
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Dual gas and electricity customers will see their annual bills fall by an estimated €1,674, it said.
Flogas general manager Seán O’Loughlin said: “As winter approaches, we are pleased to announce a reduction of 30 per cent in our standard unit rates and standing charges for both gas and electricity.
“While wholesale energy markets remain unpredictable, we have seen a calming of volatility of late and this allows us to make these reductions.
“While these reductions will be welcomed by our customers, we are conscious that many remain vulnerable to continuing cost-of-living increases.
“Our customer service teams are ready to talk to any customer who is having difficulty in paying their energy bill or are looking for other options to help save money.”
The cut follows recent reductions by Prepay Power – which on Thursday announced a 13.5 per cent cut from the beginning of November – as well as larger energy providers like SSE Airtricity, Energia and Bord Gáis Energy, which have flagged upcoming price cuts of between 12 per cent and 20 per cent since the start of September.
Energy companies have faced renewed political pressure to pass on falling wholesale energy prices to customers.
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Last week, Taoiseach Leo Varadkar said he did not think recently announced cuts were “going to be enough”, adding that he planned to meet energy firms in the coming weeks and put to them his view “that there should be further reductions over the next few months” if wholesale prices continue to fall.
Speaking to The Irish Times recently, Paul Plewman, head of Australian investment bank and commodities trader Macquarie, said there are upside risks for European and UK natural gas prices this winter.
“A lot is obviously weather dependent. Last year, everyone got away with it in terms of it being a very mild winter in the UK and Europe. But the system doesn’t last that long in terms of storage – I’m talking about gas storage in particular – so I think a lot of people are nervous about what the weather could do,” Mr Plewman said.
“It seems to be [that] people feel, I think, it’s under control but maybe the question is: are we are we a bit complacent about how it will play out over the winter?”
