Bord Gáis Energy is to reduce what it charges residential customers for electricity and gas.
The company is to cut electricity unit rates by 10%, gas unit rates by 9.5% and standing charges by 8%.
The decreases will come into effect on February 29th and will be applied to the company’s 600,000 domestic customers.
The changes will result in electricity customers saving €190 a year on the average annual bill, while gas customers will save €141 a year.
It is the second price reduction in four months by the supplier. In November it shaved 15.5% off the unit rates for both electricity and gas, as well as standing charges.
The company claims today’s development will mean Bord Gáis Energy customers will have the lowest standard variable dual fuel prices in Ireland.
“These reductions combined with the November price drop will result in dual fuel customers saving almost €1,000 per annum on their bills,” said Dave Kirwan, Managing Director, Bord Gáis Energy.
“Despite some volatility remaining, wholesale energy prices have continued to stabilise, and our careful hedging strategy has meant we can pass on today’s savings.”
The move by Bord Gáis Energy comes just two days after Electric Ireland, which has the largest share of the market, lowered its rates for its 1.1m users.
Domestic energy suppliers are in the middle of their second round of price reductions since energy costs peaked on wholesale international markets after the start of the Ukraine war and then began falling back as pressures eased.
While further price reductions later in the year are seen as likely by experts, energy costs still remain elevated and way above what is considered normal after a prolonged series of price increases by all suppliers as wholesale costs soared.
In October 2022, Bord Gáis hiked its energy prices by almost 50%, while in April of that year, it raised its electricity prices by almost 30% and its gas prices by over 40%.
The company reported an operating loss of €30m in July of last year, as a direct consequence of the pricing pressures in the retail supply market.
The business also set up an Energy Support Fund to help vulnerable customers and boosted the number of customer care staff available to help those experiencing difficulties in paying bills.
“Whilst today’s announcement will be welcome news for all customers, Bord Gáis Energy recognise the last 24 months has been particularly difficult for those struggling to meet their bills,” Mr Kirwan said.
“We have shown our commitment, through various initiatives, to ease the financial burden on customers throughout the energy crisis and we continue to do so.”
“We urge any customer concerned about their energy bills to get in touch with us as soon as possible.”
