Pinergy Becomes First Energy Provider To Cut Prices As Wholesale Costs Fall — Business d’Or
Pinergy, an energy provider in Ireland, has announced a 7.1% reduction in electricity prices for its 30,000 residential customers starting from March 31, 2022. This makes Pinergy the first energy supplier in Ireland to decrease its prices since the recent fall in elevated wholesale costs on international markets.
The company had raised its charges seven times over the past two years, with the most recent increase of 18% in December 2021. Pinergy’s CEO, Enda Gunnell, stated that the price decrease is due to the recent reduction in wholesale electricity costs.
Although the move is welcome, Pinergy’s electricity prices were previously among the highest in the market, and their prices are still around 8% above those of Electric Ireland, the largest electricity supplier in the market.
The announcement of this price decrease is another sign of some normality returning to the energy market, according to Daragh Cassidy, Head of Communications at switching website bonkers.ie.
Pinergy has become the first energy supplier in Ireland to reduce its prices since wholesale costs began to fall on international markets, cutting electricity prices for its 30,000 residential customers by 7.1% from 31 March, equivalent to €183 off an estimated annual bill.
Pinergy’s CEO, Enda Gunnell, stated that the company is committed to reducing electricity prices when circumstances and market conditions allow it, and warned that the outlook on global wholesale markets continues to show inflated and volatile pricing over the medium term, with wholesale electricity costs still 300% higher than they were in 2019.
He also said reforms of the energy market are still urgently required. The reduction is small relative to the increases imposed over the past two years but will put pressure on other providers to follow suit.
However, energy suppliers have been slow to pass back those decreases in wholesale costs to customers, because prices are dependent on a number of factors.
Housing Minister Darragh O’Brien has called on energy providers to follow Pinergy’s lead and pass on recent cuts in wholesale energy prices to their customers.
Speaking at the opening of a civic plaza amenity area in Clonmel, O’Brien said it was “about time” that energy providers reduced their charges to customers after wholesale energy prices had fallen over the past few months.
The Minister also said that no decisions have yet been taken by the Government on the future of cost-of-living measures for householders. O’Brien expressed confidence that other providers of electricity and gas will follow what Pinergy has done.
The Government is set to decide on the future of energy supports designed to lower the burden of high prices on households this week.
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Originally published at https://businessdor.com on February 20, 2023.
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