The move is expected to spark another round of price cuts from all the major suppliers in Ireland but still leaves prices at high levels.
With the official start of summer just around the corner and some half-decent, warmer weather hopefully on the way, energy bills are thankfully less of a worry for households. For the next few months at least.
However many of us are still struggling with cost-of-living pressures and increased mortgage and food costs. So the news today that SSE Airtricity is cutting its energy prices yet again will provide a welcome boost to households' finances.
So how much can customers of SSE expect to save and does the news mean we're finally over the energy crisis?
Here's everything you need to know...
SSE Airtricity price drop
SSE is cutting its electricity prices by 10% and its gas prices by 10% from 1st July. However its standing charges will remain unchanged.
The decrease will apply automatically to all SSE customers who are on a variable tariff. This includes anyone on a discounted tariff. For example if you recently signed up to SSE and are receiving a 20% discount, this won't be affected. Your discount will just be applied to the new, lower rates.
However those on fixed-rate tariffs with SSE will see no change.
The price cut will see the average SSE customer save around €150 a year on their electricity costs and just over €100 a year on their gas.
SSE last reduced its prices in February when it cut its electricity prices by 12.80% and its gas prices by 11.50%. And before that it reduced its prices in November 2023.
On top of the decrease announced today, SSE is also offering new customers who switch further discounts of up to 20%!
Why are prices falling?
Over the past year or so we’ve seen wholesale gas and electricity prices fall significantly, albeit from very high levels, and these falls are now slowly being passed on to consumers which is obviously good news.
However wholesale electricity prices in Ireland remain just over DOUBLE pre energy crisis levels. And it's a similar situation for wholesale gas prices. And this is why energy costs for households remain so high.
Indeed, even after today’s price cut, SSE’s third in less than a year, its electricity prices remain around 70% above where they were in early 2021 before the war in Ukraine wreaked havoc with energy prices while its gas prices are around 80% above previous levels. This means households will still be paying around €1,000 a year more for their gas and electricity than they were only a few years ago.
So the energy crisis isn't over just yet even if the worst of the crisis has now thankfully passed.
Switch and save on your energy
If you’re looking to save money on your energy bills, there's never been a better time to switch to a cheaper supplier.
All the main suppliers are now offering big discounts, of up to 20% or more, to new customers meaning you could save hundreds on your bills in just minutes.
Head over to our energy comparison page to review the options available to you. Whether you’re looking to compare electricity, gas, or dual fuel deals, bonkers.ie has got you covered.
