Flogas cuts prices by 30% as costs to drop by €895 on average
Around 70,000 Electricity From Take For Has November Will Reductions Gas Who That From And Customers Residential Flogas Benefit The Effect 6 Will
Flogas has announced a 30% reduction in its electricity and natural gas unit rates and it is also cutting its standing charges, marking one of the biggest reductions announced by energy companies in the Irish market.
It will see the average annual standard rate electricity bill reduced by €895 on average, while gas bills will fall by €778 on average.
Flogas has around 70,000 residential customers for electricity and gas who will benefit from the reductions that will take effect from November 6.
“While wholesale energy markets remain unpredictable, we have seen a calming of volatility of late and this allows us to make these reductions,” said Sean O’Loughlin, Flogas Energy general manager.
“Our customer service teams are ready to talk with any customer who is having difficulty in paying their energy bill or are looking for other options to help save money,” Mr O’Loughlin added.
Flogas followed moves by their competitors in lowering prices after wholesale prices dropped earlier this summer to their lowest point in two years.
However, prices may increase again across energy suppliers following a surge in wholesale prices last month. European wholesale gas prices spiked by 25% in early August.
The sudden increases were driven by fears over supplies of liquefied natural gas from Australia which are threatened by strike vote, experts said, and come despite European storage levels for next winter already filling rapidly.
Prices for the Irish wholesale gas which in large part comes from the North Sea are determined by the UK futures market, but that market is in turn influenced by the continental European market.
From November, Electric Ireland residential electricity prices will be cut by 10%, with gas prices to fall by 12%.
Energia announced reductions of up to 20% for residential customers effective from October 3, while PrePayPower will decrease its unit rate for gas by 13.5%, with its unit rate for electricity being cut by 12.8% from November.
Bord Gáis, owned by British company Centric, is one of the last suppliers to cut prices. The energy giant, which also owns British Gas, and has over 525,000 Bord Gáis customers in the Republic.