Bord Gáis Energy, one of the largest energy providers in Ireland, is to cut the price of the current unit rate of gas and electricity by 15.5 per cent.
Standing charges on both fuels have also been reduced by 15.5 per cent, the utility company said on Wednesday.
However, even after the reduction, Bord Gáis’s prices remain around double what they were in 2020.
It hiked its energy prices by almost 50 per cent last October. Before that, in April 2022, it increased its electricity prices by almost 30 per cent and its gas prices by more than 40 per cent.
The company is by far the country’s biggest gas supplier with more than 300,000 customers. It also has more than 350,000 electricity customers.
The move to reduce prices was expected following price drops from all its competitors in recent weeks, but it is the first time the company has reduced its prices in more than 3½ years.
The new rates are effective from November 9th for all residential customers and are in addition to any discounts that current Bord Gáis Energy customers already benefit from.
This means that the average gas bill will fall to €1,607, which amounts to a saving of €274 per year. The average electricity bill will fall to €1,948, which will amount to a saving of €357.
The company said dual-fuel customers can expect an annual average bill of €3,555, which is a saving of €631.
Daragh Cassidy, spokesman for price comparison website bonkers.ie, said the news would be welcomed by customers as they head into the colder autumn and winter months.
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“It’s also good to see that Bord Gáis has cut its standing charges,” he said. “These were increased hugely by all suppliers during the crisis.
“No one can avoid them, no matter how little energy they use, so it’s good to see Bord Gáis begin to reverse some of the previous hikes.
“However, even after today’s reduction, Bord Gáis’s prices remain around double what they were in 2020 before Covid and then the war in Ukraine wreaked havoc with energy prices.
“Yes, prices are falling, but they’re falling from really high levels. So it’ll still be a very expensive winter to heat and light our homes.”
Mr Cassidy said it “remains to be seen” if there will be further price drops from Bord Gáis over the coming weeks given how high wholesale prices remain.
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“I think we’ll see another 10 per cent to 15 per cent reduction in a few months’ time if wholesale prices remain where they currently are,” he said.
“But that would still leave our prices well above the EU average and well above what we’re used to paying. The peak of the energy crisis seems to have passed. But we’re still a long, long way from a return to normality.”
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Bord Gáis Energy managing director Dave Kirwan said the company was happy to be able to ease pressure on customers.
“Today we are announcing a reduction in our gas and electricity unit rates of 15.5 per cent,” he said. “Importantly, we are also reducing our standing charges by the same amount for all residential customers.
“We know energy costs have been hugely challenging for customers over the past two years. Whilst the energy market remains uncertain and volatile, we are happy to be in the position to pass on these reductions to our customers today.”
Bord Gáis posted an operating loss of €30 million over the first half of 2023. The company partly blamed high wholesale energy prices, which forced it to absorb higher costs.
The group, which is part of British Gas owner Centrica, earned a €40 million profit during the same period in 2022.
