Electric Ireland’s most recent announcement is the third price cut in one year, with the previous two reductions having come into effect in November 2023 and March 2024.
ADVERTISEMENTIreland’s biggest energy supplier, Electric Ireland, recently revealed that it was cutting gas and electric prices for more than 1.1 million residential clients.
This announcement is the third consecutive price cut in a year, and will apply to all new and existing residential clients from 1 November this year.
The company’s Smart Meter Plansunit rates will be cut by 5%, in an attempt to convert more clients to smart meter technology.
For Smart Meter Plan clients, this reduction will be anywhere €64 and €75 per year, depending on the specific plan they have.
Customers who do not have Smart Meter Plans will have their gas unit and electricity prices fall by 3%, saving €40 on average on yearly gas bills and €45 on average on yearly electricity bills.
The company also reiterated that it would not be transferring the increased Commission for Regulation of Utilities (CRU) network charges onto its residential electricity clients.
Suppliers are expected to face this hike in network charges from 1 October onwards.
Electric Ireland's previous two price cuts came into effect in November 2023 and March this year.
Including the upcoming price reduction coming into effect this November, these three price cuts would mean a 20.4% fall in annual prices and a 19.3% drop in yearly electricity prices.
The company also offers a variety of support measures for struggling customers, such as Pay As You Go (PAYG) meters, flexible payment plans and energy saving tips and insights.
In a statement, Pat Fenlon, executive director of Electric Ireland said: “Today’s announcement continues our commitment to deliver value to our customers, while also supporting the transition to a more sustainable energy future.
“Electric Ireland will not be increasing prices for our electricity customers, despite the increases in network charges as recently announced by the CRU, which would have resulted in an increase of €101 per annum.
“We are pleased to announce that we will be reducing the electricity unit rates for all Electric Ireland customers by 3% or 5% for customers on a Smart Tariff Plan. We are also reducing our gas unit rates by 3%.
“Electric Ireland remains focused on empowering our customers with competitive pricing and innovative solutions to make the best choices possible for their energy needs, and ultimately, to reduce energy consumption and save money.”
Electricity Ireland’s move has also led to a number of speculations over whether other major Irish providers could also follow suit.
ADVERTISEMENTRegarding this, Daragh Cassidy, head of communications at price comparison website Bonkers.ie, said as reported by Irish Examiner: “They may or may not reduce prices slightly.
"I had hoped that we might see prices fall again by maybe 10% to 15% before the end of the year, but then the big grid fees, sanctioned by the CRU, kind of put that into doubt.
“There was room for another very, very small price cut but the increases on the other end limited the price decreases.”
CRU increases network charges to boost electricity grid investment
The Commission for Regulation of Utilities recently raised its network charges, to help increase investment in the electricity grid.
ADVERTISEMENTThis will result in suppliers having to pay up to €100 more a year per household, which they may or may not choose to pass on to customers. In turn, this may limit any electricity and gas price cuts that these suppliers may have planned.
The Commission also upped the public service obligation (PSO) levy, which is usually used to support Ireland’s national renewable energy schemes. This will mean an additional annual cost burden of €42 for all electricity customers, starting from this October.
CRU said on its website: “Ireland is going through an unprecedented change in our use and demand for electricity.
"There is significant investment required to ensure that Ireland has a high-quality network that most importantly supports the growth in demand for all customer groups, but also the move away from fossil fuels to deliver a range of measures such as microgeneration, electric vehicles, electrification of heat and other services that will provide a more sustainable use for our electricity network.
ADVERTISEMENT“Ireland is on the outer boundary of the European Union, and due to this geographical location and the dispersed nature of our population, network costs are in the higher range when compared to other European countries as more network infrastructure is required to reach relatively fewer customers.”
