Electric Ireland is to cut the cost of its domestic electricity and gas from the beginning of November and has promised to absorb higher network charges that were given the green light by the energy regulator last week.
The energy provider said it is cutting the cost of domestic electricity for all customers on its smart meter tariff by 5 per cent while other customers will see the cost of their electricity fall by 3 per cent.
It also plans to cut the cost of its domestic gas by 3 per cent with the move from the State’s largest energy supplier set to benefit over 1.1 million residential customers
Last week the Commission for the Regulation of Utilities (CRU) said providers could increase the so-called standing charges imposed to cover the cost of maintaining the networks transmitting power to homes and businesses in a move which, if passed on, will add around €8.40 to monthly domestic bills.
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However, as part of its price cutting announcement, Electric Ireland said it would instead “absorb” the charge saving its customers €101 over the course of the next 12 months.
Electric Ireland said it was offering a higher rate reduction of 5 per cent to customers on smart meter tariffs to encourage more people to take advantage of the technology, which, it said, enables them to optimise their energy consumption.
These customers will see an annual decrease of between €64 and €75 depending on which smart plan they are on.
All other Electric Ireland residential customers will see their electricity and gas unit rates reduce by 3 per cent. These decreases mean that Electric Ireland’s residential customers will save an average of €45 on their annual electricity bill, and an average of €40 on annual gas bills.
The company’s three price decreases in November 2023, March 2024 and November 2024 will result in a cumulative reduction of 19.3 per cent in electricity prices and 20.4 per cent in gas, delivering an annual saving of €376 and €337 on the average electricity and gas bills respectively.
This is a combined annual reduction of €713 for Electric Ireland’s dual fuel customers in the past 12-month period.
Announcing the cut, Electric Ireland’s executive director Pat Fenlon said the company was working to “deliver value to our customers, while also supporting the transition to a more sustainable energy future”.
People will not have to do anything and the discounted rates will automatically apply to accounts from the end of next month.
While the third price cut from the provider in 12 months will be welcomed by its customers, the cost of energy remains substantially higher than in recent years with the annual cost of domestic energy in over the next 12 months likely to be in the region of €3,000 compared with about €2,000 before the Russian invasion of Ukraine in 2022 sparked an energy and then a cost of living crisis.
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