Wholesale electricity costs fell by almost 30% over last year

Wholesale electricity prices have fallen by almost 30 per cent in the 12 months to April, new figures show.

This comes despite a slight increase in electricity costs between March and April this year, according to figures published by the Central Statistics Office (CSO).

Wholesale electricity prices, or what is paid for electricity from the Single Electricity Market grid, increased by 2.1 per cent between March and April, but were 29.5 per cent lower compared to April last year.

Prices are down 59.4 per cent since April 2022 and have fallen 77.2 per cent when compared to the peak that occurred during August 2022.

An increase or decrease in wholesale prices can be an indication of what consumers will be charged in the future.

Daragh Cassidy, from price comparison site bonkers.ie, said household gas and electricity bills remain very high because prices are still just over double pre-energy crisis levels.

"Nevertheless, given where wholesale prices currently are, it’s highly likely we’ll see another round of price cuts over the coming months of between 10 to 20 per cent. This comes on the back of two rounds of price cuts introduced since last September that have seen energy bills fall by around 20 to 25 per cent already.

"In the meantime, anyone who’s not in contract should seriously consider switching energy supplier. Anyone on standard rates will be paying around 37 or 38 cent per kilowatt hour including VAT for their electricity at present.

"But rates as low as 24 or 25 cent are now on offer to new customers, which equates to a saving of around €500 for the average household. It’s a huge difference. And it's similar for gas."