Flogas, the energy retailer owned by London-listed DCC, has announced that it will be reducing electricity and gas prices for its customers by up to 30% from November 6th. The company aims to pass on recent wholesale energy price reductions to both its gas and electricity customers as winter approaches.
These price cuts will apply to all variable customers, including those with a smart meter. According to Flogas, the average electricity bill will see a monthly saving of €74.58, amounting to €895 annually. The average natural gas bill will benefit from an annual saving of €64.84, equivalent to €778. Dual gas and electricity customers can expect an estimated annual reduction of €1,674.
Flogas General Manager, Sean O’Loughlin, emphasized the company’s commitment to these reductions, stating, “As winter approaches, we are pleased to announce a reduction of 30% in our standard rate unit rates and standing charges for both gas and electricity. While wholesale energy markets remain unpredictable, we have seen a calming of volatility of late and this allows us to make these reductions.”
Flogas also expressed awareness of the cost of living increases affecting many customers and offered assistance to those struggling to pay their energy bills or seeking options to save money.
This announcement from Flogas follows recent price cuts by other energy providers, such as Prepay Power, SSE Airtricity, Energia, and Bord Gáis Energy, who have all reduced prices by various percentages since September. Energy companies have faced political pressure to pass on falling wholesale energy prices to customers, and the Irish government plans to push for further reductions if wholesale prices continue to decline.
Looking ahead, there are concerns regarding potential upside risks for European and UK natural gas prices this winter, especially considering weather-dependent factors. Paul Plewman, head of Australian investment bank and commodities trader Macquarie, highlighted the possibility of a more severe winter impacting gas storage and raising concerns among industry experts.
Overall, Flogas’ decision to reduce electricity and gas prices will be welcomed by customers, providing some relief in the face of rising costs.
Sources:
– Flogas
– The Irish Times