Electric Ireland has announced price reductions for its residential electricity and gas customers from April 1, which will result in up to €100 off their annual bills.

Electric Ireland said it will cut its electricity unit prices by 2.5% and gas unit prices by 11.5% for its 1.2 million residential customers.

It said the move will benefit its average residential electricity customers with a reduction of €22 (including VAT) a year and its average residential gas customers with a reduction of €78 (including VAT) a year. 

This is a combined annual reduction of €100 for the company's dual fuel customers.

Marguerite Sayers, executive director of Electric Ireland, said the cuts marked the company's biggest reduction in gas prices since it began selling gas. 

"In addition, we provide customers with a long-standing discount rate that doesn't disappear after a year, innovative new products and the right energy advice," she added.

Eoin Clarke, CEO of Switcher.ie, said that energy costs have been falling for sometime and he expects other suppliers to follow Electric Ireland and announce similar price cuts. 

He said he would encourage energy customers to take advantage of the big savings that are also available to them through discounts and new customer offers. 

"Right now an average customer can save €351 by switching to the cheapest gas and electricity deal," Mr Clarke said.

"Looking forward, the outlook for energy prices is muted as a lacklustre world economy and the coronavirus have helped dampen energy demand," said Daragh Cassidy, Head of Communications at comparison and switching website bonkers.ie.

"As such, further price decreases from Electric Ireland can't be ruled out in the coming months. And given the competitive nature of the market right now I’d expect similar announcements from the other dozen or so energy suppliers here within weeks, if not days.