ENERGIA HAS SAID it will cut its home energy prices for customers in October. 

People on the company’s Smart meter plans will get rates cut by 20%, which is the equivalent to a €357 reduction a year. Dual fuel electricity and gas rates will also fall by 20%.

This will make an average saving of €682 a year based on the average annual bill.

Their standard electricity rates will drop by 15%, leading to a saving of €305 annually based on the average annual bill.

Gas unit rates are to be cut by 20%, with the average annual bill set to decrease by €325.

Gary Ryan, Managing Director of Customer Solutions, Energia Group said that the company is working to “mitigate” the volatility in the market.

“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,” he said. 

Daragh Cassidy, Head of Communications for bonkers.ie welcomed the news and said that it was a sign of “some normality” returning to the energy market.

“It’s likely all the other main suppliers will announce similar drops over the coming weeks.

“However even after today’s reduction, Energia’s prices remain very high and way higher than the EU average. Prices are falling, but they’re falling from really high levels to begin with.

“The energy market still remains volatile with gas and electricity prices on wholesale markets still at levels that are way above normal. And we’re a long way from prices returning to the more normal levels we last saw in 2020. It’ll still be a very expensive winter to heat and light our homes,” he said. 

Cassidy said that prices will remain high for many months to come.

He added that despite the Government reducing VAT from 13.5% to 9% last year, “it still collected more money as prices were so high”.