DUBLIN, Ireland: Energy supplier Flogas has announced significant price cuts in response to falling gas and electricity costs, marking a positive development for consumers.
Effective March 25, Flogas will slash its variable rate for natural gas by a substantial 25 percent and reduce the variable rate for electricity by 15 percent. This move translates to substantial savings for consumers, with an estimated 274-euro reduction on average electric bills and 429 euros on average gas bills. Additionally, Flogas will lower its standing charge for gas by 10 percent.
This reduction marks the second instance in just over four months where Flogas has adjusted its prices downward. Other major players in the energy market, such as Energia, Bord Gais Energy, and Electric Ireland, have also recently announced price cuts.
Despite the significant reduction, Daragh Cassidy of bonkers.ie notes that Flogas's previous higher rates meant that even with these adjustments, its prices align more closely with competitors.
"Looking forward, the good news is that wholesale gas and electricity prices continue to fall. They are still at quite high levels but if the trend continues, barring another economic shock of some sort, it is very likely we will see a third price decrease from Flogas of a similar size in the second half of the year I think."
Recent data from the Central Statistics Office (CSO) indicates a substantial decline in wholesale electricity prices over the past year. Electricity prices dropped significantly in December, contributing to a notable decrease compared to previous years. This decline contrasts sharply with the surge in energy costs following the Covid pandemic and the conflict in Ukraine.
Wholesale electricity prices had soared after Russia's invasion of Ukraine in 2022, reaching a peak in August that year. However, over the last 12 months, these prices have seen a remarkable decline, although consumer groups argue that energy companies are not passing on these savings promptly enough.
While wholesale prices have fallen considerably, consumer prices have not decreased at the same rate.