SSE Airtricity has announced plans to cut gas and electricity prices by 10%.

The price cuts take effect from July 1st and represent a second decrease this year.

Dual fuel customers can expect to save up to €254, including VAT, annually on their bills.

Today’s news will benefit around 250,000 electricity customers and 90,000 gas customers.

Others to follow suit

Bonkers.ie spokesperson Darragh Cassidy expects other energy companies to follow suit.

“This is obviously welcome news and comes at a time when many households are still struggling with cost-of-living pressures and high energy costs,” he said.

“This is the third price cut from SSE Airtricity in less than a year and I’d expect all the other major suppliers to follow suit with similar price reductions over the coming weeks.”

The price cuts will automatically apply to those on variable rates and those on fixed-rate contracts will not benefit from the change.

Crews from ESB Networks replace fallen electricity pylons in a field near Galway airport following Storm Isha. Image: PA Images / Alamy Stock Photo

Mr Cassidy said prices are still much higher than a few years ago.

“Despite the latest price drop, SSE’s electricity prices are still around 70% higher than they were before the energy crisis broke out while its gas prices remain around 80% higher,” he said.

“This means households will still be paying around €1,000 a year more for their gas and electricity than they were only a few years ago.”

Electricity VAT

He called for Government to keep VAT rates the same.

“There will be a lot of focus over the coming months on what measures the Government should take in the budget to support households with high energy costs," he said.

“But at a minimum, I’d call on the Government to keep the reduced 9% rate of VAT.

“Heating and lighting is not a luxury product and given how high prices remain, and will remain for the foreseeable future, now is not the time for the Government to be further adding to energy costs.”

SSE Airtricity last reduced its prices in February when it cut its electricity prices by 12.80% and its gas prices by 11.50%.

Main image: An electrical distribution system in Cork. Image: aphperspective / Alamy Stock Photo