Lower electricity bills on way but energy 'price war' unlikely

News that one of the major suppliers in the Irish energy market is to drop its prices has sparked hopes of lower bills for 

Energia  is cutting its standard unit rate of electricity by 15% and its gas unit rate by 20%

Those with smart electricity meters will see a 20% reduction in their rates.

The new rates come into effect from 3 October, just ahead of te start of the winter heating season.  

The  comes on the back of a price drop by Pinergy earlier in the week. It is now expected that other main suppliers will announce similar drops over the coming weeks. 

Daragh Cassidy of Bonkers.ie said: "But the energy market still remains volatile with gas and electricity prices on wholesale markets still at levels that are way above normal. So there's a limit to how far prices can drop for consumers in the medium term.

"There isn't going to be any energy 'price war' and we're a long way from prices returning to the more normal levels we last saw in 2020. 

"However it does look like there is some light at the end of the tunnel and the worst of the energy crisis seems to have peaked. 

The wholesale market has experienced significant volatility over the past two years and we have worked at all times to mitigate the challenges of these costs for our customers. This price reduction is a positive step. Our existing customer supports will remain in place to provide any required assistance to customers experiencing difficulty. We continue to review energy market pricing and are committed to providing customers with the best possible value into the future," Mr Cassidy said.