GAS firm firmus energy has followed the lead of its rival utility SSE Airtricity by announcing a 10 per cent price cut for its 50,000 Belfast customers from the start of October.
It plans to reduce its domestic and business natural gas tariffs across Northern Ireland, which it claims will mean annual savings of between £29 and £57 for an average domestic customer.
But in its so-called 'ten towns' area, which includes Portadown, Craigavon and Banbridge and which is regulated, the reduction will be just 5 per cent, which has been agreed following discussions with the Utility Regulator, Department of Enterprise and the Consumer Council.
The company's managing director Michael Scott said: “We consistently keeps natural gas prices as low and stable as possible for our customers. All our customers will receive a letter within a week outlining their tariff reduction and the date it will come into effect.
“We will continue to monitor costs and wholesale fuel prices closely to ensure the price we charge our customers is the best value that we can offer."
He added: “As we approach our 10th birthday, we have invested almost £100 million in our network area and laid more than 980 km of gas pipelines, enabling properties in more than 20 towns, cities and villages to benefit from natural gas, and we now have 26,000 customers in these areas.
Jenny Pyper, chief executive of the Utility Regulator, said the firmus announcements are "welcome news".
"As we enter the winter months, this reduction will benefit households and businesses as they see this reduction reflected in their gas bills from next month.
"The main reason for the decrease is falling wholesale gas costs. As we regulate firmus energy’s prices in the Ten Towns, our tariff review involves a thorough analysis of all their cost elements.
"Ten Towns customers of firmus energy can be confident that, due to our regulation, their bills reflect the actual costs of supplying gas to their homes and businesses.
"While we don't price regulate firmus energy’s tariff in the greater Belfast area, their 10 per cent reduction is further good news for consumers and demonstrates the responsiveness of the market.
"These reductions mean that consumers here are continuing to benefit from amongst the lowest gas standard tariffs in the UK."
Last Friday SSE Airtricity said it was cutting its gas prices in Belfast by 10 per cent, following on from an 8 per cent price reduction in April.
The reduction will apply to all of its 125,000 home and small business customers, or 72 per cent of the natural gas market in the greater Belfast area.
