Electricity prices may drop again prior to the winters

Electricity prices may drop again prior to the winters

Fast-growing electricity provider Pinergy has announced a second price reduction, which is likely to trigger a wave of price reductions from its competitors.

It happened a few days after Yuno, a new player in the energy supply market, introduced home discounts.

Just as we enter the more energy-demanding winter months, the major players in the market will soon announce small decreases in household electricity and gas costs.

Prior to that, Pinergy raised the stakes for its rivals by lowering the standard unit electricity it gave to levels below those provided by Electric Ireland, owned by ESB and the largest home electricity provider in the market.

In the past eight months, Pinergy has been the only energy provider in this market to lower costs.

A typical family will save about €220 over the course of a year, including VAT, thanks to the most recent reduction in unit rate of 9.5 pc. The most recent cutoff date is October 1.

Pinergy broke ranks in March of last year to deliver a 7.1 pc price cut.

This action by the company, which provides power to households with pay-as-you-go metres and those who receive bills every two months, resulted in a savings of €183 for the average customer over the course of a year.

The Household Energy Price Index shows that Irish bills are 80% higher than those in the rest of the EU.

Prices have more than doubled in the last two years, forcing the typical family to pay roughly €2,000 a year for power.

However, there is optimism that consumers may experience a decrease in their energy costs in the upcoming months as a new competitor shakes up the industry.

Yuno Energy claims that regularly observing its clients' domestic energy use, might help them save more than €500 annually on their electricity bills.

The major companies in this sector, including Electric Ireland, Bord Gáis, Energia, and SSE Airtricity, are also anticipated to announce price reductions in the upcoming weeks.

The price drops will most likely be modest, though. The majority of observers anticipate savings of between 10pc and 20pc, which will nevertheless result in high winter energy prices.