Good news for gas consumers: Electric Ireland is set to reduce gas prices for 140,000 customers by 4% from the beginning of November. However,the company’s 1.1 million electricity customers will not see an increase in their rates before winter.

This proclamation from one of the country’s largest energy suppliers is highly likely to be well-received, especially after several other companies recently raised their tariffs.

The 4% decrease in Electric Ireland’s residential gas unit rates and standing charges translates to an annual saving of €57.56 on the average gas bill.

Electric Ireland, owned by ESB, has now reduced its gas prices four times and its electricity rates three times as November 2023.

Executive Director of electric Ireland Pat Fenlon stated that the supplier is “acutely conscious of the financial pressures facing our customers and we believe today’s announcement will provide improved value for Electric Ireland customers as we face into the winter”.

This announcement follows Energia’s confirmation yesterday that it would increase electricity prices by up to 12.1% from 9 October, adding over €200 to the annual bills of many customers.

Last month, Flogas increased its prices by an average of 7%.

Suppliers have attributed these hikes to increased network charges or grid fees,leading to expectations that other suppliers would also raise prices.

Rising Arrears and Winter concerns

“However, prices obviously still remain high. And some of the gas savings are going to be taken back by the Government next month when it increases the rate of carbon tax in the Budget again,”

The Commission for Regulation of utilities (CRU) recently warned that the number of energy customers in arrears “could spike” without government energy credits this winter.

In its ‘Decision Paper’ on customer-protection measures for the winter period, the regulator noted that this winter will likely be the first post-energy crisis winter without Government energy credits, which had reduced household electricity bills by €1,500 since March 2022.

The CRU also reported an increase in indebted customers breaking repayment plans in the past year, with the value of arrears for both electricity and gas customers rising last winter.

The regulator noted that 12% more accounts were in arrears across both domestic electricity and gas markets in May this year compared to May 2024.

The CRU has announced additional measures to protect energy customers this winter, addressing rising arrears and increased requests for help from charities.

Expert Reaction and Consumer Advice

Daragh Cassidy from comparison site bonkers.ie described Electric Ireland’s announcement as “good news but a bit of a surprise”.

Regarding grid charges, he noted that while other suppliers have passed on the increase in electricity network charges, Electric Ireland has chosen to absorb them for now.

“However, prices obviously still remain high. And some of the gas savings are going to be taken back by the government next month when it increases the rate of carbon tax in the Budget again,” Mr Cassidy said.

“I’d question the wisdom of doing this when gas prices remain so high and 25% of households are behind on their gas bills,” he said.

Mr Cassidy added: “With some suppliers hiking prices and others reducing them or keeping them steady, it shows there is still competition and choice in the market, and I’d really encourage anyone who’s concerned about high energy costs to switch supplier. Discounts of up to 30% or more are available for an entire year to peopel who switch, which could save the average household well over €700 on their gas and electricity bills.”