One of the State’s largest energy providers is to clip the cost of domestic energy by as much as 25 per cent in a move which will mean some customers’ gas and electricity bills fall by more than €700.
It is the second time in less than six months that Flogas Energy has rolled out a substantial price cut with the cumulative impact of the latest reduction and a 30 per cent reduction last November likely to mean some customers’ annual bills fall by more than €2,000.
Flogas – which has in the region of 25,000 domestic customers in the Republic – is the last of the big five energy companies to cut prices in recent weeks, although the cut is substantially larger than some of the reductions by its rivals.
“However Flogas’s rates were much higher to begin with,” noted Daragh Cassidy, spokesman for price comparison website, Bonkers.ie. “Today’s reductions now bring its standard rates into line with the rest of the competition for the first time in around two years.”
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He also noted that the cut will apply automatically to all Flogas customers on standard variable rates. but those on fixed rates or a smart meter tariff will see no change.
The price cuts will take effect from March 25th with the cost of gas falling by 25 per cent and the standard unit rate cost of its electricity dropping by 15 per cent.
Flogas said the move would mean the average variable rate electricity bill would fall by €274 a year while gas customers should see their bills decline by €429. Customers who get both gas and electricity from the company stand to save €703.
The company also said it was reducing the standing charges for natural gas by 10 per cent.
Customers will not have to do anything and the discounted rates will automatically apply to accounts from the end of next month.
Its fixed Smart rate and variable Smart rate tariffs will remain unchanged and electricity standing charges will remain unchanged.
[ Q&A: Energy prices are going down. Here’s what consumers need to know about itOpens in new window ]
“Following on from the 30 per cent reduction in our electricity and natural gas rates in November, we are making good on our promise to continue to deliver competitive energy prices whenever the market allows,” said Flogas Energy’s general manager Seán O’Loughlin.
While wholesale energy markets can be unpredictable he said the firm “continued to see a calming of this market and it has allowed us to pass on further savings to our customers”.
The price cuts are substantial and will be welcomed by its customers. However, it comes after three years in which Flogas and other providers increased prices on multiple occasions. While the annual cost of domestic energy in 2024 is likely to be less than €3,000 for the average household, it remains hundreds of euros more than it was just two years ago.
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