Latest price drop by SSE Airtricity sparks hopes of price cuts by other energy suppliers
The latest energy price cut announced by Airtricity will save households an estimated €150 per year but prices are still 70% higher than 2021
SSE Airtricity has announced a second reduction this year in electricity and gas prices for households, sparking hopes that other energy suppliers will follow suit.
This is the third time the energy supplier has cut prices since the energy crisis began in 2022.
However, despite the welcome price drop, the price for electricity from SSE Airtricity remains 70 per cent higher than it was in early 2021.
It is believed that this latest reduction will put pressure on rivals in the Irish market, Electric Ireland, Bord Gáis Energy and Energia to announce more cuts. All of these main suppliers have announced two reductions in the past year.
While these price cuts have seen costs reduced for customers, they are cost reductions on record-high charges.
The latest reductions announced by SSE Airtricity will not take effect until the start of July.
It is estimated that the reduction will save a typical family €150 a year on electricity and €105 on gas.
Their electricity and gas prices are being cut by 10pc each. However, SSE’s standing charge will remain unchanged.
The new electricity unit rate will be just over 32c per kilowatt hour, including Vat.
The decrease will automatically apply to all customers on a variable tariff. However, those on fixed-rate tariffs will see no change.
Darragh Cassidy of Bonkers.ie described the latest price cut as "welcome news".
"Over the past year or so we’ve seen wholesale gas and electricity prices fall significantly, albeit from very high levels, and these falls are now slowly being passed on to consumers which is obviously good news.
"However wholesale electricity prices in Ireland remain just over double pre energy crisis levels. And it's a similar situation for wholesale gas prices. And this is why energy costs for households remain so high.
"Indeed, even after today’s price cut, SSE’s third in less than a year, its electricity prices remain around 70% above where they were in early 2021 before the war in Ukraine wreaked havoc with energy prices while its gas prices are around 80% above previous levels. 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.
"So the energy crisis isn't over just yet even if the worst of the crisis has now thankfully passed," Mr Cassidy said.