BY JOHN ELLIS, FINANCIAL ADVISOR
With the recent reduction in electricity prices, you are presented with an opportunity to save on your energy bills. However, navigating the multitude of residential electricity suppliers in the country can be overpowering, making it crucial to make informed decisions while looking for the best deals available.
Currently there are eight different residential electricity providers with each offering varying rates and promotional offers. While the supplier with the lowest unit rate per kWh may seem like the most cost-effective option, it’s essential to consider additional factors such as standing charges and promotional offers to determine the underlying overall cheapest electricity provider.
To help get the best electricity deals, it’s important to understand the context of these price reductions. Wholesale electricity prices in Ireland have dropped significantly, with a 40% decrease over the past year, according to recent data from the Central Statistics Office (CSO). Since their peak during the energy crisis in 2022, prices have fallen by approximately 78%, although not all of this decrease was immediately passed on to consumers.
In March of this year wholesale electricity prices remained relatively stable, nearing three-year lows. Despite this, costs are still double pre-crisis levels. According to Darragh Cassidy of Bonkers.ie, “it’s highly likely we’ll see another round of price cuts in the second half of the year of between 10 to 20 percent. This comes on the back of two rounds of price cuts introduced since last September that have seen energy bills fall by around 20 to 25% already”.
This means significant savings potential for consumers. While those on standard rates may be paying around 37 or 38 cents per kWh, new customers can access rates as low as 25 or 26 cents from several suppliers. This substantial difference could result in savings of over €500 for the average electricity customer.
Anyone who’s not in contract should seriously consider switching energy supplier. Shop around, even households that have switched providers in the past year could benefit from switching again, as unfortunately loyalty does not necessarily pay off long term in the energy market. It’s important to note that most suppliers offer 12-month contracts, often with an exit fee of around €50 if terminated early. But in some cases, paying the exit fee may be worthwhile if a new supplier is offering significantly better rates.
Comparing electricity prices regularly and switching to the cheapest provider can result in substantial long-term savings, potentially amounting to over €700 in just one year for average-usage households.
Why not register with a platform like One Big Switch which has over 500,00 members and receive access to exclusive deals negotiated with energy providers, ensuring you stay informed about the latest cost-saving opportunities.
While the reduction in electricity prices in Ireland is undoubtedly a positive development for consumers, finding the best deals requires careful consideration of various factors beyond just the unit rate per kWh. By staying informed, comparing prices, and taking advantage of promotional offers, you can maximize your savings and navigate Ireland’s electricity market with confidence.
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