Energy companies must cut prices further to ease pressure on householders – Ahearn

Energy companies must cut prices more to ease pressure on householders, particularly as the colder weather sets in, a Fine Gael Senator said.

Senator Garret Ahearn said it is incumbent on energy companies to continue to reduce prices as wholesale electricity prices have dropped in recent months.

Senator Ahearn, Seanad spokesperson for Enterprise, Trade and Employment said: “In an extremely welcome move today, Electric Ireland has announced it will reduce residential electricity and gas prices by 8% and 7% respectively from 1st March 2024, its second reduction this winter.

“The decreases equate to a saving of €12.73 per month on the average electricity bill and €9.27 per month on the average gas bill, and over 1.1 million residential electricity and gas customers are set to benefit from the move.

“In December, SSE Airtricity announced a second price cut from February 1. The other main energy providers must follow suit with another round of price cuts, particularly at a time of year when householders’ electricity bills are higher due to increased demand on the grid.

“While price reductions announced by suppliers are welcome, energy prices are still higher than they were since mid-2020 – for a variety of reasons.

“That is why, as part of the package of measures in Budget 2024, Government announced a further package of electricity credits worth €450.

“Three payments of €150 (including VAT) are being made between December 2023 and April 2024.

The first credit was applied on 1 December 2023, and will appear on household bills during the following 2-month period. The second credit was applied on 1 January 2024 and the third will be applied on 1 March 2024.

“Energy prices also remain high for businesses, and we must also see those prices be reduced to the same extent as household bills.

“Government is also doing everything we can to ensure that the credits get to the people who need them. registered vulnerable customers, people with hardship meters, or people with low usage due to microgeneration will not have any credits withheld.

“Anything to help put more money back in peoples’ pockets and help with the cost of living is a positive development. For that reason we must also see energy suppliers play a role in driving down prices on gas and electricity prices for householders, Senator Ahearn said.