Households to save €700 after energy costs cut again

FIVE companies have now announced energy price cuts since the start of this year – just as warmer spring weather starts to arrive.

The cut, which will save average users more than €700 a year in dual bills, means the price war between suppliers shows no sign of ending.

Flogas, which has 70,000 customers, is cutting electricity rates by 15% and gas by 25%. The price cut follows another significant price drop of 30% for both electricity and gas in November.

It also follows recent cuts from Electric Ireland, Energia, SSE Airtricity and Bord Gáis Energy.

Customers could see an annual drop of €274 on their electricity bill, and as much as €429 on their gas.

The changes will take effect from March 25, while others announced will come into effect either at the end of this month or in early March. SSE’s electricity and gas cuts of up to 12.8% started last week on February 1.

Flogas last cut prices in November with gas and electricity both down by 30%. But critics say the cuts come in just as winter ends and demand for both electricity and gas falls.

Daragh Cassidy, of utility switching site Bonkers.ie, explained that supplies of LNG (liquefied natural gas) from the US to help replace Russian gas have entered the market helping to reduce domestic costs.

Also a mild winter meant reduced demand too and warmer spring weather now reduces energy demand further, particularly for gas-fired heating.

However, wholesale prices of gas are still almost double the price they were before the Russian invasion of Ukraine which sent energy prices soaring as markets panicked sparking fears about supplies.

The wholesale price of electricity is down more than 67% on a year earlier, the latest official figures show.

Flogas is also decreasing its standing charge for gas by 10%, but smart meter tariffs will remain unchanged. It all means the average household with a dual fuel deal will save €429 a year on gas and €274 a year on electricity, totalling €703.