Power company turns up the heat on rivals with discount deals
NEW entrant to the energy market Energia is putting pressure on its rivals with bigger discounts for those who take both gas and electricity from it.
The move is set to turn up the heat on Bord Gais which has been free to set its own gas prices for the past two weeks.
Energia is set to announce today that it will give customers who sign up to take both fuels from it 18pc off the standard electricity price and 17pc off the standard gas tariff, the Irish Independent has learned.
This will mean families that opt for the bundle will save €320 off the standard rates.
Energy expert Simon Moynihan, of price comparison site Bonkers.ie, said the discount deal would be the cheapest in the market. Energia was already the cheapest in the market for dual fuel, but the latest move will pile pressure on Bord Gais, Electric Ireland and SSE Airtricity to respond.
Airtricity is the next most competitive for households that opt for a dual-fuel bundle.
It will cost average householders who opt for the Energia deal €1,883 a year, which is on offer until the end of August.
Mr Moynihan said: "That will save an average household €321.38 off standard rates and make it the cheapest deal in the marketplace for eligible customers."
The summer is usually a quiet time for energy deals, but finance experts said it was a good time to put in place a better-value plan to ensure there are no winter bill shocks.
"We really are seeing some great deals available for customers that are willing to go out and get them," Mr Moynihan said. "Although summertime wouldn't traditionally be the big energy-switching season, with offers like these available now, it's certainly a good time to lock in a good discount to carry customers through until next summer."
The latest discount deal comes just two weeks after Bord Gais was cleared to set its own prices for gas. It is now expected to launched cut-price dual fuel deals.
Up to now it has had to get permission from the regulator when setting gas tariffs because it had such a large proportion of the gas market.
Now families could be set to benefit from cheaper gas prices thanks to the deregulation of Bord Gais Energy.
Mr Moynihan said new Bord Gais customers could see a decrease of up to €140 in their gas bills if the newly deregulated company aims to compete with the cheapest providers.