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Households to save €54 on gas and power bills

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Alex White

Alex White

Alex White

HOUSEHOLDS will soon see a €54 reduction in their annual gas and electricity bills as Bord Gais Energy announced a cut in its prices.

The utility company is cutting domestic gas prices by 3.5pc.

Bord Gais is also slashing its electricity prices for existing customers by 2.5pc from March 16.

The reduction in the gas price represents a saving of €29.47 on the average customer bill, while the reduction in the electricity price represents a saving of €24.91 on the average bill, the company said.

failing

Electricity and gas suppliers have been accused of failing to pass on the benefits of plunging commodity prices in the form of lower prices for families.

Bord Gais has come under additional pressure as its sister company in the UK, British Gas, announced a price cut of 5pc this week for consumers.

Dave Kirwan, chief operating officer of Bord Gais Energy, said: "With the reduction in international wholesale energy costs, we now have the opportunity to drop our prices in both gas and electricity and we are happy to be able to do so.

"We will continue to monitor wholesale and other costs and should further savings occur, we will seek to reflect that in our prices."

Wholesale gas prices are down 24pc in the past year. Half of the electricity generated in this state is from gas, and it is the main input for residential gas supplies.

Energy Minister Alex White said it was a "welcome development".

"I hope to see other energy suppliers follow suit.

"I will be meeting with the energy suppliers next week to hear what they have to say on the question of passing on wholesale price reductions," he said.

However, although the chairman of the Oireachtas Transport and Communication Committee John O'Mahony welcomed the reduction, he said the utility company could have considered introducing the cuts immediately.

"It would have been far preferable for the price reductions to have been applicable from now as opposed to from March 16," the Fine Gael TD said.

potential

"The worst of the cold weather should have passed by that point. Delaying the price cut until March 16 lessens the potential savings."

Mr O'Mahony said that he has called the heads of the energy companies before the Oireachtas Committee on Transport and Communication and those who have not reduced their prices by then will be asked to account for how they can continue to charge the same prices.

"When global energy prices increase, so do our household energy bills," he said.

"Surely the same principal should apply when international energy prices fall?"

hnews@herald.ie


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