An electricity price war looks set to be declared early next month when the domestic electricity market is fully deregulated allowing the ESB to compete with its rivals on price.
The Commission for Energy Regulation (CER) announced today that the regulation of the company’s electricity prices in the domestic market will come to an end on April 4th when the company will be able to match and undercut the prices charged by Bord Gáis Energy and Airtricity.
The announcement was welcomed by both the company and consumer groups.
ESB chief executive Pádraig McManus described the step as a “significant milestone” which would enable the company to “actively compete in the residential market”.
As part of the deregulation process, the ESB is also undergoing a substantial rebranding.
From next month, the company’s supply business will be known as Electric Ireland. While customers will see the new name on their bills and communications with the ESB within weeks, the existing ESB logo will remain on all communications until the beginning of next year.
The deregulation announcement was welcomed by the Consumer Association of Ireland, with chief executive Dermott Jewell describing it as a good day for consumers.
“We have waited a long time for this to happen and for much of that time the ESB was saying that if the regulator removed its shackles it would be able to aggressively compete on price," he said.
He said the company was being given “the chance to get into the game” and said it would create “a win-win situation for the suppliers and consumers and should drive down prices”.
