Energy provider, SSE Airtricity, is set to cut its charges for standard household electricity and gas by 10%.
The reductions will take effect from July 1st and will benefit the company’s more than 300,000 domestic customers in the Republic of Ireland.
The changes will result in electricity customers saving up to €149 a year on the estimated average annual bill.
While gas customers will save up to €105 a year.
Standing charges are to remain the same and the changes will apply to those on variable tariffs.
It is the second time this year that the provider has reduced its charges, having announced a 12.8% reduction in electricity prices and a 11.5% drop in gas prices in December that took effect in February.
Prior to that SSE Airtricity reduced its prices in September by up to 12%.
In 2022, it increased its prices twice, while in 2021 they rose three times.
“We have worked hard over the last couple of years to support our customers and we remain committed to passing on reductions as soon as it is possible to do so,” said Klair Neenan, Managing Director of SSE Airtricity.
“We hope today’s announcement is welcome news for households.”
“As always, we encourage any customer experiencing difficulty with their bills to contact us in confidence – we will work with them to find a solution.”
This is the first announcement of a price cut to come from one of the larger energy providers in several months, following a series of reductions by all suppliers earlier in the year.
Experts say the move by SSE Airtricity could provoke similar reactions from competitors.
“This is obviously welcome news and comes at a time when many households are still struggling with cost-of-living pressures and high energy costs,” said Daragh Cassidy, head of communications at price comparison website, Bonkers.ie.
“This is the third price cut from SSE Airtricity in less than a year and I’d expect all the other major suppliers to follow suit with similar price reductions over the coming weeks.”
“Nevertheless, despite the latest price drop, SSE’s electricity prices are still around 70% higher than they were before the energy crisis broke out while its gas prices remain around 80% higher.”
“This means households will still be paying around €1,000 a year more for their gas and electricity than they were only a few years ago.”
Wholesale electricity prices fell nearly 30% in the 12 months to April according to figures released by the Central Statistics Office last year.
They have now fallen back nearly 60% since April 2022 and 77% since they peaked in August 2022.
Earlier this month, the Commission for the Regulation of Utilities said it expects further price reduction from suppliers in the coming months.
However, the regulator also said a return to retail prices levels like those in 2021 is unlikely as wholesale energy prices are still higher than they were at that time.
“Unfortunately, looking forward, given where wholesale gas and electricity prices seem to be settling, it’s tough to see prices for households falling much further in the short to medium term at least,” Mr Cassidy said.
“Hopefully we might see a similar sized price cut in the early part of next year. But we may need to get used to paying much higher prices for our energy going forward.”
On Monday, the Taoiseach said cost of living issues would have to again be considered in the context of October’s budget.
