Home energy users were finally given some good news yesterday as Electric Ireland announced it is cutting its average gas bills by around €58 a year.

Gas prices will drop from November 1 for its 150,000 residential customers while electricity prices will remain fixed.

The announcement comes a day after rival Energia announced a 10.9% price rise for its 300,000 electricity customers.

Electric Ireland executive director Pat Fenlon said: "We are acutely conscious of the financial pressures facing our customers and we believe this announcement will provide improved value for Electric Ireland customers as we face into the winter."

Residential gas unit rates and standing charges will be cut by 4% from November 1 which will save €57.56 on the average annual gas bill.

However, experts fear any savings announced now will be lost by expected increases in carbon tax rates in the Budget on October 10.

Retail energy market expert Daragh Cassidy, of price comparison site Bonkers.ie, said: ‘This is good news but a bit of a surprise.... While other suppliers have passed on the increase in electricity network charges, Electric Ireland has chosen to absorb them for now."

He added: "However, prices obviously still remain high. ‘And some of the gas savings are going to be taken back by the Government next month when it increases the rate of carbon tax in the Budget again. I’d question the wisdom of doing this when gas prices remain so high and 25% of households are behind on their gas bills."

Cassidy continued: "With some suppliers hiking prices and others reducing them or keeping them steady, it shows there is still competition and choice in the market.

"And I’d really encourage anyone who’s concerned about high energy costs to switch supplier."