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Energy firms urged to follow Pinergy's price cut lead

/ 21st February 2023 /
BP Reporter

Any further Government cash help to soften spiralling energy bills may be delayed until the autumn, it was reported yesterday .

The possible delay comes as a pay-as-you-go company Pinergy announced a price cut of 7% or €183 on the average annual energy bill.

The discount comes amid strong criticism of energy firms for not cutting retail prices, despite wholesale market costs falling sharply in recent months.

Housing Minister Darragh O'Brien also piled on the pressure yesterday, as he called on energy companies to follow Pinergy's lead. "It's welcome that Pinergy have done that. We've seen the wholesale energy prices drop over the last number of months and it's about time those decreases were passed on to customers," he said.

"The other electricity providers, and indeed energy providers, are sure to follow what Pinergy have done," he said.

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Another €200 electricity credit is due next month; however, further energy supports are currently "looking doubtful" until the autumn, although no Cabinet decision has been made yet.

Daragh Cassidy, of price comparison site Bonkers.ie, said: "It looks as if one's going to be paid in autumn instead of in May. In March and April usage eases back a little bit."

He added: "Prices are still going to be high in September as we move into next winter, so the Government will be under pressure to have something small again they can announce in the Budget. My guess is there will be nothing for the wider public in May but there might be something in September or October." The cash supports now total €800 for each household across the country, including next month's planned €200 payment.

Pinergy, which has around 27,000 electricity customers, is cutting its standard residential electricity. prices from March 31.

Energy firms
price cuts
Pinergy announced a price cut of 7% or €183 on the average annual energy bill. (Pic: Getty Images)

Company chief Enda Gunnell explained: "We had previously committed to reducing electricity prices when circumstances and market conditions allowed.

"With recent reductions in the wholesale costs of electricity, we are now pleased to be able to announce this price decrease. However, the outlook on global wholesale markets continues to show inflated and volatile pricing over the medium term.

"The energy crisis has not gone away, and market reforms of the energy sector are still urgently required. We continue to engage with regulators and policy makers to urge reform for energy users, generators and suppliers across the marketplace."

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