Bord Gáis Energy has announced a price drop.

The supplier says from 16th March it will cut the unit price of gas by 3.5%. The price of electricity will be cut by 2.5%.

The company says the reduction in the gas price represents a saving of over €29 a year on the average customer bill, while for electricity customers it is almost €25.

Bord Gáis Energy says the move follows a reduction in wholesale energy costs.

However, it is only a fraction of the fall in wholesale gas prices which are down 30% in recent months.

Dave Kirwan, Chief Operating Officer, Bord Gáis Energy spoke to Lunchtime with Jonathan Healy today and he said they bought their wholesale supply months ago.

He also spoke about people who were already in contracts and how they could avail of the discount available to other cutsomers and that the company are keen to pass on prices to customers:

The government has been called on to demand greater reductions.

Junior Energy Minister Joe McHugh says consumers should shop around:

Originally posted at 11.46am