Energy provider Pinergy is set to cut its standard electricity prices from 1 October, its second price reduction so far this year.
Back in March, it became the first energy supplier here to reduce prices as elevated wholesale costs began to fall on international markets.
The company said the latest reduction will result in a 9.5% drop in the typical household cost, which it said was equivalent to €220 annually in an estimated annual bill.
It said this is based on a domestic customer using typical consumption on standard tariffs.
"After our price reduction in March, we said that we would continue to review pricing," said Enda Gunnell, Pinergy CEO.
"Today, we are pleased to announce this second decrease for our customers as wholesale electricity pricing has eased in recent months," he added.
However, Mr Gunnell said the energy crisis has not gone away and wholesale pricing remains inflated and volatile.
"We continue to urge policy makers to invest in market reforms of the energy sector to accelerate the energy transition for all," he said.
"Policies like the introduction of MicroGeneration payments have been a very welcome development and we are pleased to be able to hold our 25c per kWh payment for customers who are exporting excess electricity from solar panels to Pinergy," he added.
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Pinergy said it will continue to engage with customers who have alerted the company that they may have difficulties paying for electricity.
"As ever our advice is for customers to contact us, if they feel that may have some difficulties with energy costs," Mr Gunnell said.
Minister for Finance Michael McGrath has welcomed the announcement and said he expects to see other energy companies to follow in the coming weeks.
However, he warned the international energy market remains "quite volatile and while we have seen reductions in wholesale prices, we are not anywhere near the level we were pre the war in Ukraine".
He said the outcome for the coming months ahead remains uncertain and the Budget will contain supports for businesses and households.
Daragh Cassidy of price comparison website Bonkers.ie said this latest price drop will be welcome news to customers ahead of the colder autumn and winter months.
He said he expects other energy suppliers to announce similar price decreases over the coming weeks, as they buy electricity at today's slightly lower wholesale prices.
But he added that wholesale electricity prices in Ireland are still around three times normal levels.
"So there’s a limit to how far prices for consumers can drop for the time being," he said.
"And there’s going to be no energy 'price war’ or a return to even remotely normal energy prices for this winter."
Back in 2020, before Covid and then the war in Ukraine wreaked havoc with energy prices, households were being charged around 20 to 22c per kWh on average, including VAT for their electricity.
Even after this price drop, Pinergy’s second of the year, Mr Cassidy said its standard unit rate is over 41 cent including VAT. And this compares to an EU average of around 26 cent.
"It’s going to be another very expensive winter to heat and light our homes," Mr Cassidy said
"However this price drop, as well as Yuno Energy’s recent entry into the market, which is offering a rate of just over 38 cent including VAT, shows prices are starting to creep back to slightly more manageable levels," he added.
Asked whether it plans to cut its prices in the coming weeks, Electric Ireland said it has not increased its residential prices since October 1st of last year and keeps its prices under constant review.
"While forward wholesale prices have fallen in recent months, particularly so since their peak in autumn 2022, they are currently in the region of 290% higher than in 2020," it said.
"Meanwhile, the Estimated Annual Bill for Electric Ireland electricity customers increased by 93 percent,"ot said.
While SSE Airtricity said it buys energy on the wholesale market many months in advance.
"Our approach to hedging means we have been able to protect customers from the full impact of wholesale market volatility, helping to ensure stability for customers and limiting their exposure to market extremes," it said.
"Wholesale prices still exceed where prices were pre-crisis, however we actively monitor energy markets and, as we have done before, will reduce our prices as soon as it is possible to do so."
Flogas said due to recent market volatility, no decisions have yet been made on variable rates, but it added that it is continuing to keep the situation under review.
"However, Flogas fixed price rates are the best in the market for natural gas and among the most competitive for electricity," it said.
Bord Gáis Energy and Energia declined to comment.
