Energy provider Pinergy has become the first energy supplier here to reduce its prices since elevated wholesale costs began to fall on international markets.
The move will see the typical household bill fall by 7.1% for its 30,000 residential customers.
Like most energy providers, Pinergy has been grappling in recent months with soaring wholesale energy prices.
Over the past two years, it had increased what it charges seven times, most recently announcing an 18% increase in December which kicked in last month.
But now the company says it will cut its electricity prices from 31 March by 7.1%, equivalent to €183 off an estimated annual bill.
"We had previously committed to reducing electricity prices when circumstances and market conditions allowed," said Pinergy CEO Enda Gunnell.
"With recent reductions in the wholesale costs of electricity, we are now pleased to be able to announce this price decrease."
Daragh Cassidy, Head of Communications at switching website bonkers.ie, said the move was welcome and another sign of some normality returning to the energy market.
"However Pinergy's electricity prices were among the highest in the market before today's announcement. This reduction now makes them one of the cheaper suppliers - if you could use that word in today's market. But its prices are still around 8% above Electric Ireland's - the biggest electricity supplier in the market."
We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage Preferences
Pinergy has warned 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.
Pinergy also said reforms of the energy market 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," Mr Gunnell said.
The reduction is small relative to the increases imposed over the past two years, but nonetheless will put pressure on other providers to follow suit.
We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage Preferences
Last week, it was revealed that wholesale electricity prices had fallen by 41% in the final three months of last year, compared to the previous quarter.
They were also 17% cheaper compared to the last three months of 2021.
It means prices are now cheaper than they were before Russia's invasion of Ukraine.
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.
"Other suppliers will no doubt come under pressure to follow Pinergy's reduction," said Mr Cassidy.
"However a lot will depend on their hedging strategies and when they bought their gas and electricity. And some suppliers like Electric Ireland and Prepaypower already have cheaper unit rates so may not respond at all until prices on wholesale markets drop further."
In a statement, Electric Ireland said it is very difficult to project the trajectory of residential electricity and gas prices but that it will continue to keep its prices under constant review and is committed to providing customers with the best value possible across a broad range of products.
Bord Gáis Energy also said that because of its hedging strategy, the recent downward fluctuation in wholesale energy prices is not reflected in current customer prices and won't be for some time.
It said that while it cannot comment on speculation about potential future price changes, it continues to keep rates as competitive as possible and strives to protect customers from the worst increases in the wholesale energy markets.
SSE said it knows energy prices are a primary concern for customers and that it actively monitors energy markets.
It added that it will look to reduce prices as soon as it is possible to do so.
While Energia said it monitors wholesale electricity and gas prices on an ongoing basis and will continue to do so, with any future changes to customer pricing being carefully considered.
This week the Government is set to decide the future of energy supports designed to lower the burden of high prices on households.
But in County Tipperary today, Minister for Housing Darragh O'Brien said that "it’s about time" that energy providers pass on the recent cuts in wholesale energy prices to their customers.
The minister also said that no decisions have yet been taken by the Government on the future of cost-of-living measures for householders.
Asked today if he thought energy companies should follow the example announced by Pinergy and reduce their charges to customers, he said: "I do. I think it’s welcome, I think 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 that he is "sure" other providers of electricity and gas will follow what Pinergy have done.
Meanwhile the minister said that the Government did what it said it would do in the Budget last year, and "see people through the winter months," with "the most significant cost-of-living package of measures".
The Government has supported working families and people on social welfare "very well" and helping people deal with the increase in energy prices.
Minister O’Brien was speaking in Clonmel where he officially opened the Kickham Barracks civic plaza amenity area, on part of the site of the former army barracks. He is also opening a number of new social housing developments in Clonmel and elsewhere in county Tipperary today.
In relation to imminent changes to the cost-of-living reliefs, he said no decisions have been taken.
"We’ll meet in cabinet tomorrow and go through proposals. We will extend cost of living measures, they will be very targeted. We’re also cognisant coming into the summer months too there may be less pressure on heating and electricity, but we’ve got to be prepared for next winter coming also.
"Unfortunately, what we see right now, the war in Ukraine unfortunately isn’t coming to an end any day soon, that will continue pressure on energy provision, no question."
He said that "because we’ve been able to manage the economy well we’ve been able to use the surpluses that we’ve generated" but that the Government will be "prudent" in what it does.
"I think people can see that we’ve done what we said we would do. We targeted measures at those who needed them most over the winter months and we’ve done that successfully, so there’s learnings to be made for that, but we won’t be found wanting," he said.
