MINISTER FOR CLIMATE Eamon Ryan has said he expects household energy prices to “fall significantly” in the first quarter, or the first half, of next year. 

Ryan said it is significant that the forward price for gas for the month ahead is 81 pence per therm, compared to being above 100 pence for the last year and a half.

While the price is still above historical average levels of approximately 50 pence, Ryan said it is noteworthy that it is on the way down and that he expects it to be driven down further.

“My expectation is we’re going to see prices fall quite significantly, I think in the first half/first quarter of the year.

“The wholesale price yesterday in Ireland was down to 68 euros per megawatt hour and we’ve also had a very windy autumn [and a] very windy winter, so that wind power drives the price down also and that’s going to feed into the retail prices in the first half of next year,” Ryan told reporters at a roundtable interview in Dublin today.

He said while we will not know the exact reduction, some energy providers have already announced plans to cut their prices for next year.

Last week, SSE Airtricity announced plans to cut electricity rates by 12.8% from February.

Ryan said he expects other players to follow suit.

“It’s just a good news story I think for householders looking into the new year,” he said.

He added however that he does not think prices will return to their historic averages.

“But it won’t be the exceptional prices over the last two years,” he said.